Fixed-Price Incentive
Type of contract in which the buyer pays the contractor for the actual allowable cost incurred, not to exceed a ceiling price defined in the contract, and the contractor can earn more or less profit depending on its ability to meet defined performance or cost criteria. In fixed-price contracts, the performance risk is borne mostly by the seller, not the buyer.
Fixed-Price Incentive
Type of contract in which the buyer pays the contractor for the actual allowable cost incurred, not to exceed a ceiling price defined in the contract, and the contractor can earn more or less profit depending on its ability to meet defined performance or cost criteria. In fixed-price contracts, the performance risk is borne mostly by the seller, not the buyer.
