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Certified Associate in Project Management · PMI
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- In a Fixed-Price contract, the seller bears the most cost risk because they are committed to delivering the product or service at the agreed-upon price regardless of actual costs incurred. If costs exceed the fixed price, the seller absorbs the loss. Conversely, in a Cost-Reimbursable contract, the buyer bears more cost risk because they reimburse the seller for actual costs plus a fee.