- contractrisico
- contract risk
The potential and consideration of risk in procurement actions. Generally the
forces of supply and demand determine who should have the maximum risk of
contract performance but the objective is to place on the supplier the maximum
performance risk while maintaining an incentive for efficient performance. In a
fixed price contract, the supplier accepts a higher risk than in a cost type
contract in which supplier's risk is lowest.
Source: Max Wideman.com
Copyright: Wideman Comparative Glossary
of Common Project Management Terms v3.1 is copyright by R. Max Wideman, March
2002.
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