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In the context of Figure 4, the P50 cost is represented as âcâ dollars. The P50 estimate is one with equal chance of project overruns or underruns up till when the project scope can be finalised. The P90 value is an estimate of the project cost based on a 90% probability that the cost will not be exceeded.his arises as the P90 cost estimation was adopted at the early stage during project scoping. Had the P50 cost estimate been adopted, there would have been a deviation of $7 million between the actual ($69 million) and budgeted P50 figure ($62 million). The project would have been under-budgeted.
Cost-reimbursable (or cost-plus) contracts involve payment to the seller for sellerâs actual costs, plus a fee typically representing seller profit. Cost-reimbursable contracts place more risk on the buyer. Three common types: cost plus fixed fee (CPFF), cost plus incentive fee (CPIF), and cost plus award fee (CPAF).In a CPFF contract the seller is reimbursed for allowable costs for performing the work and also receives a fixed fee payment that is calculated as a percentage of the initial estimated project costs.he contract states that the builder will be reimbursed for the costs associated with the construction of the shed, estimated at $10,000. In addition, the builder will receive a fixed fee equal to 50% of the estimated costs ($10,000 x 50% = $5,000).