Monday, May 13, 2019

FIXED-PRICING CONTRACTING Essay Example | Topics and Well Written Essays - 250 words

FIXED-PRICING CONTRACTING - Essay Examplelabor and materials. Therefore, by utilise these indices the profitability and going concern of small personal credit linees is shield from fluctuating economic conditions. Thus, when there are solid doubts about the economic environments stability for prices of labor and materials used by small contract firms during the period of performance of contract, it is eminent all pre-defined contingencies subject to fluctuations are measured and determined (Stanberry, 2012).Therefore, the fixed-price contracts EPA are the roughly appropriate type of contacts for small businesses not enjoying any economies of scale and having the desire to grow and expand in a hostile environment where rivalry between firms for the limited market share is intense. Thus, small business owners can take advantage of favorable economic conditions to make supernormal profits when price adjusts up by negotiating high terms for the ceiling of contract price and negotia ting low base level prices during unbecoming economic

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