Cost-Reimbursement Contract
/ˈkɒst rɪɪmˌbɜːrs.mənt ˈkɒn.trækt/
Definitions
- (n.) A contract under which a contractor is paid for all its allowed expenses plus an additional payment to allow for a profit.
The government awarded a cost-reimbursement contract to ensure all development expenses would be covered.
Forms
- cost-reimbursement contract
- cost-reimbursement contracts
Related terms
See also
Commentary
Cost-reimbursement contracts require meticulous documentation of incurred costs and are often used when uncertainties prevent precise upfront pricing.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.