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What type of contract poses the greatest risk to the customers?

A Cost plus.

Cost-reimbursable, also known as cost plus, is a contract type where the buyer agrees to pay the seller for all actual costs incurred in completing the work, plus an additional amount. Some cost plus contracts pay an additional fixed fee, while others pay an additional award fee or incentive fee. The buyer is the one with the highest risk, since they may have little control over the seller’s spending.

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3 years ago

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