Cost-Reimbursable Contract

Cost-Reimbursable Contract. A type of contract involving payment to the seller for the seller?s actual costs, plusa fee typically representing seller?s profit. Cost-reimbursable contracts often include incentive clauses where, if theseller meets or exceeds selected project objectives, such as schedule targets or total cost, then the seller receivesfrom the buyer an incentive or bonus payment.

This definition was found in the PMBOK V5

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