22.6) Fixed-price contracts, where the contractor bids a fixed price to complete a system development, may be used to move project risk from client to contractor. If anything goes wrong, the contractor has to pay. Suggest how the use of such contracts may increase the likelihood that product risks will arise.
There will be unforeseen setbacks in the development of any software. With a fixed contract, developers might try to cut corners elsewhere to stay within budget in response to issues during development. Fixed price contracts create risk by fixing the budget and resources.
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