CII Guide to Reimbursable Contracting

Publication No

IR260-2

Type

Excel spreadsheet

Publication Date

Jul 01, 2011

Pages

154

Research Team

RT-260

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DOCUMENT DETAILS

Abstract

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Abstract

Reimbursable contracts are used in the engineering and construction industry to address situations in which fixed price contracts (including variations of lump sum and unit price contracts) are either inappropriate or unattractive commercially. For example, reimbursable contracts provide a mechanism for projects that are faced with a substantial amount of uncertainty, new technologies, a variable labor market, or volatile materials pricing. However, understanding when to use reimbursable contracting, and how to successfully implement a reimbursable contract, requires analyzing a complex set of factors. This guide aims to help decision makers develop an appropriate contracting strategy and, if a reimbursable strategy is chosen, it will help them understand how implementing a reimbursable contract differs from implementing a lump sum contract

Filters & Tags

Knowledge Area

Procurement & Contracts, Project & Program Management, Risk Management

Project Phase

Concept, Detailed Scope, Detailed Design (Engineering), Procurement, Construction

Project Function

Project Management, Project Controls, Procurement & Contracts, Risk Management, Business Development & Proposals

Industry Group

Light Industrial, Heavy Industrial, Buildings, Infrastructure

Research Topic

Reimbursable Contracts

Keywords