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28 December, 03:41

Which party to a contract absorbs the preponderance of cost risk when a firm-fixed-price (ffp) contract is used?

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  1. 28 December, 06:56
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    A firm-fixed-price (FFP) contract is a type of contract in which the price is not subject to any adjustment or changes that the contractor may experience on the cost during performing such contract. This contract type places upon the contractor the maximum risk or full responsibility for all costs and the profit or loss that may result.

    Therefore, the answer to this question would be:

    "The contractor or the seller"
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