two contracts ” fixed price with escalation” and “fixed price incentive”
Both behave in manner? this statement is true or false
Expert Answer
Fixed price with escalation and fixed price incentive are two different types of fixed price contracts.
Fixed price with escalation contract, also known as fixed price with economic price adjustment, is usually used for long term projects that involves the supply or delivery of a particular item over a long period of time. Because of the extended production period, the material and labour costs may fluctuate or become unstable owing to the fluctuating market conditions. Thus, in order
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