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

FIXED-PRICING CONTRACTING - Essay Examplelabor and materials. Therefore, by using these indices the profitability and going concern of small businesses is shield from move economic conditions. Thus, when there are serious doubts about the economic environments stability for monetary values of labor and materials used by small contracting firms during the boundary 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 most appropriate type of contacts for small businesses not enjoying any economies of eggshell 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 burn down take advantage of favorable economic conditions to make supernormal profits when price adjusts upward by negotiating high terms for the ceiling of contract price and nego tiating low base level prices during adverse economic