Legal Question in Construction Law in Washington
Cost & Quantity Contract
What is the difference between a "cost & quantity contract" and a "fixed" contract.
Thanks for your help!
Asked on 5/19/00, 7:29 pm
2 Answers from Attorneys
Ronald Cappuccio
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Re: Cost & Quantity Contract
The term is "time and materials" versus a fixed price. T&M you are paid for the materials, an hour rate(s), % overhead and profit. Fixed is simply $X.
Answered on 7/04/00, 11:04 pm
Jeffrey W. Jones
Jeffrey W. Jones, P.A.
Re: Cost & Quantity Contract
The answer may depend on the area in which you are operating. Under the Federal Acquisition Guidlines, Cost and Quantity Contracts are essentially time and materials or unit price contracts. The amount of payment is determined by the cost of each unit sold or produced times the quantity ordered. Fixed contracts are lump sum. Payment is made in a fixed amount, regardless of the quantity.
Answered on 7/06/00, 11:09 am
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