Suppose a contracting officer for a U.S. government contractdirects the prime contractor for that contract to do work notdescribed in the contract or to supply more goods than required bythe contract. What recourse does the prime contractor have torecover additional costs incurred in doing the additional work orsupplying the additional goods?
Expert Answer
If the fixed costs in the transaction or in the contract arequite affordable, the additional costs will only vary. The cost ofmachinery and technology is issued at a constant cost. Variableprices including the purchase of additional raw materials, requireemployees to work longer than the specified additional salary, anduse
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