<P> A cost - reimbursement contract is appropriate when it is desirable to shift some risk of successful contract performance from the contractor to the buyer . It is most commonly used when the item purchased can not be explicitly defined , as in research and development , or in cases where there is not enough data to accurately estimate the final cost . </P>
when should a cost plus contract be used
when it is desirable to shift some risk of successful contract performance from the contractor to the buyer