12 Miss. Code. R. 6-3.116.02 - Cost-Plus-a-Percentage-of-Cost Contracting

Except for a cost-plus-a-percentage-of-cost contract which agencies are urged to avoid, the use of any type of contract is permissible.

Commentary

A cost-plus-a-percentage-of-cost contract is one in which, prior to beginning the work, the parties agree that the fee will be a predetermined percentage of the total cost of the work. Thereby, the more the contractor spends, the greater its fee, and the contractor's incentive may, therefore, be to incur cost at the expense of the State and not to economize.

Notes

12 Miss. Code. R. 6-3.116.02
Adopted 1/1/2018

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