Our Hypersonic Future with Hermeus’ AJ Piplica
Village Global Podcast
00:00
Fixed Price Contracts for Development
I don't know if i would call it a plague, but costid contract certainly set up a very different, and, in some cases, perverse set of incentives or accompanying. I think from the business standpoint, you're not taking any risk. You're going to get paid for whatever work you do that's within scope of the contract. With a cost af contract, yo, you're limited in the profit percentage its generally, you know, eight %, ten%. That means to get the same amount of profit, your revenues have to be significantly larger than if you can deliver something with margins that ar y 20% - 30%. And at the end of the day, that's going
Transcript
Play full episode
