Abstract: The equipment research contract pricing model with incentive and constraint mechanism can better adapt to the price risk caused by the uncertainty of research projects, and the determination of incentive coefficient is the key of the model design. To solve the problem that incentive coefficient design is not combined effectively with the research cost risk analysis, the paper obtains the project cost probability distribution with the help of simulation method and the project work breakdown structure (WBS) after summarizing and comparing the typical incentive and constraint pricing designs. The paper also takes cost risk into account, and establishes the incentive and constraint principles of equipment research price. Based on the quantiles of the cost probability distribution, the upper and lower limits of the project cost are selected to determine the incentive and constraint coefficients. In addition, the paper carries out a case analysis to illustrate the effectiveness of the research method.