What is the difference between a fixed priced and cost reimbursable contract?
A fixed price agreement is a set price for the defined project. OSP will bill based on a fixed schedule. It is our preference that we negotiate fixed priced payments according to the following format: • 25% of the total project costs within thirty days of full execution of the contract. • 25% of the total project costs at the midway point of the project • 25% of the total project costs approximately three-quarters through the project • 25% of the total project costs upon completion.
