Those tendering for a fixed price contracts have an interest in maximising the contract value, subject to the constraint that they are competing with others for the contract.

Question

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In a fixed price contract, the contractor agrees to a set price for the work, regardless of the actual costs incurred. Therefore, those tendering for such contracts aim to maximize the contract value to cover potential unforeseen costs and ensure profitability, while also remaining competitive to win the contract.

Those Tendering for a Fixed Price Contracts Have an Interest