SPP 204

Question 1

The fee is fixed and will be unaffected by variations between the estimate and the
bids of by change orders, unless the Client initiates a fee increase.

Answer 1

Firm Fixed Price

Question 2

The CM is given an award fee of a specified maximum size if the measured
cost-related values meet or exceed the targets.

Answer 2

Award Fee Provisions

Question 3

The contract amount is adjusted upward or downward in accordance with a
pre-arranged formula to incentivize savings on operating and support costs.

Answer 3

Price Adjustment Provisions

Question 4

The Client will pay the CM a fixed fee which is adjusted according to the difference
between the final allowable costs and target costs

Answer 4

Fixed Price Incentive

Question 5

Cost reimbursement type contracts with provisions for a fee that is adjusted by
sharing formulas applied to the difference between the final allowable costs and
target costs.

Answer 5

Cost Plus Incentive Fee (CPIF) or Cost Plus Adjusted Fee (CPAF)

Question 6

The Client will pay the CM a fixed fee plus reimbursement of certain expenses
incurred in the performance of basic services.

Answer 6

Cost Plus Fixed Fee

Question 7

Construction Manager RPF

Answer 7

1.5% to 3% of the PCC

Question 8

Recommended Professional Fee for Full-time Supervision Services

Answer 8

1% to 1.5% of the PCC