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Yes, this definitely happens and is why in some situations people think fixed price contracts can end up costing more. Contractors will be extreme sticklers ab
by dr_orpheus 4y ago
Yes, this definitely happens and is why in some situations people think fixed price contracts can end up costing more.
Contractors will be extreme sticklers about their requirements on a project. So that if anything starts look off-plan or may impact something like a schedule delay they will say "nope, that's outside of our scope of work we need an extension/additional funding".
- Goronmon 4y agoContractors will be extreme sticklers about their requirements on a project. So that if anything starts look off-plan or may impact something like a schedule delay they will say "nope, that's outside of our scope of work we need an extension/additional funding". Yup, change orders are how deal with these issues when it comes to fixed-costs contacts. For better or worse, its almost impossible for a project to be perfectly specced out ahead of time. And anything that even comes close to looking like it conflicts with the spec becomes a change order.
- sidewndr46 4y agoAccording to the article, this is how money is made on cost-plus contracts > About that “plague”: NASA has traditionally procured technology from industry using cost-plus contracts, which allow contractors to charge the agency extra for extensions and changes to their plans. From my experience, the author of that article has no idea what they are talking about.