201 General. A settlement should compensate the contractor fairly for the work done and the preparations made for the ter- minated portions of the contract, in- cluding a reasonable allowance for profit. Fair compensation is a matter of judgment and cannot be measured exactly. In a given case, various meth- ods may be equally appropriate for ar- riving at fair compensation. The use of business judgment, as distinguished from strict accounting principles, is the heart of a settlement.
Appears in 3 contracts
Sources: Termination and Settlement Procedures, Cost Plus Incentive Fee Contracts, Cost Plus Incentive Fee Contract