Joseph Feibel – April 18, 2021
In a firm fixed price contract where the unit is HOUR, the contractor promises to provide the promised number of hours, and is in default if it does not do so.
In a labor-hour contract, the contractor does not promise any specific number of hours, and is not obligated to perform any specific number of hours. The contractor merely promises to do its best to get the job done within the ceiling price. If the contractor gets the job done with fewer hours, that’s okay. The contractor decides how many hours to perform.