What Are the Different Types of Contract Review and Explain Their Usage
When reading a contract, pay close attention to how each sentence is worded and look for language that can be left to interpretation. Even if both parties interpret unclear terms in the same way, it is best to revise the wording so that it is cut and dried further if possible to avoid potential conflicts once the contract is signed and active. Significant conflicts may require a third party to determine next steps based on the interpretation of the contract, so make sure all the terms are explicitly stated. (c) enforcement. A time and material contract can only be used if, at the time of placing the order, it is not possible to accurately estimate the extent or duration of the work or to anticipate costs with a reasonable degree of confidence. See 12.207 (b) for the use of temporary and in-kind contracts for certain commercial services. (3) Clause 52.216-25, definition of contract, with paragraph (b) entered into in accordance with 16.603-2 (c). If, at the time of the conclusion of the contract letter, the principal knows that the final contract is based on reasonable price competition or otherwise meets the criteria of 15 403-1 in order not to require the submission of certified cost or price data, the words “and cost or price data certified in accordance with FAR 15.408, Table 15-2 in support of your proposal` may be deleted from point (a) of the clause. If the order letter is awarded on the basis of price competition, the contracting authority must apply the clause with its deputy I. (c) Nothing in this Subsection shall limit the power of the General Services Administration (GSA) to enter into ancillary, multiple, contractual or supply contracts in accordance with other legal provisions. Therefore, the GSA regulations and program coverage of the Federal Procurement Annex in paragraphs 8.4 and 38 take precedence over this paragraph. (A) an analysis of the reasons why the use of a contract other than a fixed-price contract (e.B.
reimbursement, time and equipment, working time) is appropriate; 2. The restriction provided for in point (d)(1) of paragraph 1 of this Section shall not apply to the purchase of supplies or services involving the purchase of advisory and support services where the contracting entity or another official designated by the Head of the Agency determines that the advisory and support services are necessarily contract-related. (12) When you use the government-wide commercial acquisition card as a means of payment, orders equal to or below the micro-purchase threshold are exempt from the allocation management system to verify whether the contractor has an outstanding debt that must be recovered under the Consolidated Revenue Fund (TOP). The purpose of establishing this expectation in reimbursement contracts is to set a maximum price that the contractor should not exceed without the buyer`s consent. At the same time, when this upper limit is reached, the contractor can stop the work. Fixed-price contracts, also known as lump-sum contracts, are used in situations where payment does not depend on the resources used or the time spent. In fixed-price contracts, sellers estimate the total allowable cost of labor and materials and perform the action specified in the contract, regardless of the actual cost. For this reason, the fixed price indicated in the contract usually includes some leeway in case of unforeseen costs. 16.301-1 Description. The types of reimbursement of contracts provide for the payment of reimbursable costs incurred to the extent provided for in the contract. Such contracts shall specify an estimate of the total cost for the purposes of the commitment and the setting of a ceiling which the contractor may not exceed (except at its own risk) without the consent of the procuring entity. 16.301-2 Application.
(a) The procuring entity may use reimbursement contracts only if, (1), circumstances do not allow the Agency to define its requirements to such an extent that a fixed-price procurement is possible (see 7.105); or (2) uncertainties related to the performance of the Contract do not allow the cost to be estimated with sufficient accuracy to use any type of fixed-price contract. (b) The procuring entity shall document the justification for the choice of the type of procurement in the written procurement plan and shall ensure that the procurement plan is approved and signed at least one level above the procuring entity (see 7.103 letters (j) and 7.105). 16.301-3 Restrictions. (a) A reimbursement contract may only be used if (1) the factors of 16,104 have been taken into account; (2) A written acquisition plan has been approved and signed at least one level above the procuring entity; 3. The contractor`s accounting system is appropriate to determine the costs applicable to the contract or contract; and (4) Prior to the award of the contract or contract, reasonable government resources are available to award and administer a contract other than a fixed price (see 7.104(e)). This includes appropriate government oversight during implementation in accordance with section 1.602-2 to provide reasonable assurance that effective methods and cost controls are applied. (b) The use of reimbursement contracts for the acquisition of commercial property is prohibited (see parts 2 and 12). Although there are many types of contracts, below is a short list of types that can be used at the university. This is by no means an exhaustive list.
If you can`t find the type of contract you have questions about, contact the Office of the General Counsel. A fixed-price contract with a duration of effort is appropriate for the investigation or investigation in a specific area of research and development. The contract proceeds are usually a report that shows the results achieved by applying the required effort. However, payment is based on effort and not on results. (b) in the case of contracts which do not require the submission of certified cost or price data, the contracting authority shall obtain adequate data to determine the basic level of the adjustment and may request verification of the data submitted; (c) Delivery contracts of indefinite duration may provide for a reasonable cost or price agreement in accordance with Part 16. Cost or price agreements providing for an estimated quantity of supplies or services (e.g.B. estimated number of hours of work) shall comply with the relevant procedures of this Subsection. (iv) it is necessary, in the public interest, to award the contract to a single source due to exceptional circumstances; (3) Transfer between divisions, subsidiaries or affiliates of the contractor under common control. (4) On-demand contracts may allow for faster deliveries when production time is affected, as contractors are generally willing to maintain limited inventory when the government receives all of its actual procurement requirements from the contractor. (iii) For supplies and services, item number, subheading number (if applicable), description, quantity and unit price, or estimated costs and charges (if applicable). The corresponding extension number and the subheading number of the basic contract shall also be indicated. Unilateral contracts involve a single party promising to take action or provide something of value.
These are also known as unilateral contracts, and a common example of this is when a reward is offered for something that is found: the party to whom the reward is offered is not obliged to find the lost item, but if it finds it, the offering party is under contract to provide the reward. (2) Amount of the surtax. The amount of the surcharge levied shall be proportional to the total cost, schedule and technical performance of the contractor, measured against the requirements of the contract in accordance with the criteria set out in the procurement cost plan. Additional costs will not be earned if the contractor`s overall total cost, schedule and technical performance are below satisfactory levels. The basis for all surcharge findings should be documented in the contract file to determine at least whether the overall cost, schedule and technical performance are satisfactory or not. This determination and the method of determining the surtax are unilateral decisions made at the sole discretion of the Government. A time and material contract is ideal for buyers who don`t necessarily know what they want when they start their project. Vendors use time and material contracts when it is difficult to determine how much time they need to devote to the project and the types of materials required to complete the project. Hourly rate means the rate(s) prescribed in the contract for the payment of workers who meet the qualifications of the work category of a job category specified in the contract, which – In addition to ensuring that all the dates and benefits listed are in accordance with previous verbal agreements, the contract review phase is also an opportunity to follow everything for which your team or organization is responsible….
最新記事 by kabumori@yamanouchi (全て見る)
- 5.8 Agreement of Subject and Verb Latin - 2022年6月8日
- Y(Uk)3 the Contracts (Rights of Third Parties) Act 1999 - 2022年4月21日
- Work Agreement Duration - 2022年4月20日
