In costs-plus-fixed-fee contracts the allocation of a specific cost may be difficult to defend on the basis of any cause-and-effect reasoning.

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In costs-plus-fixed-fee contracts, the fee is undetermined and is added to the actual cost of the work. Due to the nature of these contracts, it is often difficult to justify the allocation of specific costs based on cause-and-effect reasoning, leading to potential challenges and disputes.

In Costs-Plus-Fixed-Fee Contracts the Allocation of a Specific Cost May