Why Cost Plus with Incentive?

The Cost Plus with Incentive model is selected as the most effective pricing strategy that allows reaching the maximum possible savings for you while preserving Intetics’ interests as a supplier to build long-term, “win-win” relationship between the companies.

Its primary advantage is the achievement of a minimum possible price. Since all expenses are known and the supplier’s margin is fixed at a mutually agreed level, there is no room for extra margins and profits for the supplier. Additionally, the contract structure, management process and overall relationship are greatly simplified since any risks and issues are easily resolved by both sides on a mutual basis.

Under the Cost Plus with Incentive model you pay actual costs based on reports provided by Intetics, plus our predetermined margin. The margin consists of two parts: a Regular Margin and an Incentive Margin. The latter is paid only if certain performance and quality parameters are reached by the team.

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