Tuesday, May 17, 2011

PMHUB-G Fee and Profit calculation in CPIF contract

Interesting discussion on the subject 

The buyer has negotiated CPIF contract with the seller. The contract has a target cost of $300,000 , a target fee of $40,000 , a share ratio of 80/20, a maximum fee of $60,000 and min fee of $10,000. If the seller has actual costs of $380,000, how much fee will he pay?

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