Video

  • 27 minutes

Fixed Price vs. Cost-Plus Contracts

 
In every contract negotiation, regardless of the type of contract, risk allocation is talked about. In a fixed price contract, generally the most popular contract types in the construction industry, the contractor receives a fixed price for the entire job. In a cost-plus contract, the contractor receives reimbursements for the costs, plus a fee on top of the costs which may consist of a fixed lump sum or a percentage of the cost. The potential for profit on a fixed price contract could be upwards of 30% however with a cost-plus contract the profits generally run between 2-5%. The difference in the fee potential is a reflection of the risk differential. The large percentage spread shows how vitally important it is to heighten attention to risk allocation issues in contracts and negotiations.

Our speaker, Carol A. Sigmond, reviews incentives and risks on both fixed price and cost-plus contracts; as well as when to use a fixed price contract or a cost-plus contract. She also discusses mitigating risk in these two types of contracts.

Carol A. Sigmond is a Partner in the New York office of Cohen Seglias Pallas Greenhall & Furman PC.. She concentrates her practice on construction industry matters including contract preparation, mediation, litigation, suretyship, bid protests, appeals and arbitration. Ms. Sigmond has extensive experience in litigation of construction disputes for public works and buildings in both the public and private sectors. She is an experienced mediator and is on the New York County Supreme Court Commercial Division Roster of Volunteer Mediators and the American Arbitration Association’s Roster of Construction Industry Arbitrators.
Runtime: 26 minutes

Faculty

Carol A. Sigmond

Carol A. Sigmond

Greenspoon Marder LLP

Agenda

Faculty

Carol A. Sigmond

Carol A. Sigmond

Greenspoon Marder LLP

  • Partner in the New York office of Greenspoon Marder LLP
  • Concentrates her practice on construction industry matters, including contract preparation, mediation, litigation, suretyship, bid protests, appeals, and arbitration
  • Extensive experience in litigation of construction disputes for public works and buildings in both the public and private sectors
  • Experienced mediator and is on the New York County Supreme Court Commercial Division Roster of Volunteer Mediators and the American Arbitration Association’s Roster of Construction Industry Arbitrators
  • Former President of the New York County Lawyers’ Association, former Vice President of the New York State Bar Association for the 1st Judicial Department, and member of the New York Building Congress, GCA New York, SCL North America, CLSA, ABA, New York State Bar Association and New York County Lawyers Association
  • Frequent speaker and author on topics relating to Construction Law
  • J.D. degree, The Catholic University of America School of Law; B.A. degree, Grinnell College
  • Can be contacted at (212) 524-5074 or [email protected]

All of your training, right here at Lorman.

Pay once and get a full year of unlimited training in any format, any time!

  • Live Webinars
  • OnDemand Webinars
  • MP3 Downloads
  • Course Manuals
  • Audio Recordings*
  • Executive Reports
  • White Papers and Articles
  • Sponsored Live Webinars

Additional benefits include:

  • State Specific Credit Tracker
  • Members Only Newsletter
  • All-Access Pass Course Concierge

* For audio recordings you only pay shipping

Questions? Call 877-296-2169 to speak with a real person.

Sign Up Today

Access to all training products $699/year

Unlimited Lorman Training

With the All-Access Pass there is no guessing what you will need for your yearly training budget. $699 will cover all of your training needs for an entire year!

Easy Registrations

Once you purchase your All-Access Pass you will never be any further than one-click away from attending any Lorman training course.

Invest in Yourself

You haven't gotten to where you are professionally by luck alone; it's taken a lot of hard work and training. Invest in yourself with the All-Access Pass.