The project procurement management process revolves around the contract, and the various activities involved in the procurement management process constitute the contract life cycle. this article is dedicated to contract management knowledge.
1. type of contract:
(1) divided by scope:
1) general contracting contract: only one contract with one seller (does not mean that only one contract is concluded, there may be multiple). suitable for experienced and strong sellers.
2) single contract: sign a single contract with different sellers. higher requirements are placed on the buyer's organizational and coordination ability.
3) project subcontracting: the general contractor subcontracts part or parts of the project (not the main structure of the project) to a qualified subcontractor. it should be noted that if there is a problem with the subcontracted project, the owner can either hold the general contractor liable or directly under the subcontractor.
important: there are 5 conditions to be met at the same time to conclude a subcontract:
l approved by the buyer
the subcontracted part must be non-main work of the project
only part of the project can be subcontracted, not the entire project
the subcontractor must have the corresponding qualification conditions
the subcontractor cannot subcontract again
(2) divided by payment method:
1) total price contract: set the total purchase price. the seller assumes the risk.
A. FIXED TOTAL PRICE CONTRACT (FFP): THE MOST COMMONLY USED AND EASY TO EXECUTE. THE BUYER SETS A FIXED PRICE, AND THE INCREASE IN COST IS BORNE BY THE SELLER. (BUYER'S FAVORITE)
B. TOTAL PRICE PLUS INCENTIVE FEE CONTRACT (FPIF): SET A PRICE CAP, AND GIVE FINANCIAL INCENTIVES ACCORDING TO THE PERFORMANCE OF THE SUPPLIER AFTER THE CONTRACT ENDS.
C. TOTAL PRICE PLUS ECONOMIC PRICE ADJUSTMENT CONTRACT (FP-EPA): IF THE CONTRACT PERIOD IS LONG (SEVERAL YEARS), IT CAN BE USED.
D. PURCHASE ORDER (UNILATERAL CONTRACT): WHEN NON-BULK PROCUREMENT OF STANDARDIZED PRODUCTS, THE BUYER CAN DIRECTLY FILL IN THE PURCHASE ORDER, AND THE SELLER WILL SUPPLY ACCORDINGLY. ALSO KNOWN AS "UNILATERAL CONTRACTS".
2) cost compensation contract: the cost is reimbursed and sold, plus a fee as the seller's profit. such contracts have the greatest cost risk to the buyer and apply to buyers who only know what product to want but do not know the specific scope of work, provided that the buyer particularly trusts the seller.
A. COST PLUS FIXED EXPENSE CONTRACT (CPFF): COST REIMBURSEMENT + FIXED EXPENSE (PROFIT)
B. COST PLUS INCENTIVE FEE CONTRACT (CPIF): COST REIMBURSEMENT + INCENTIVE FEE (DIVIDED ACCORDING TO THE PROPORTION OF PERFORMANCE AND AGREEMENT, THERE IS POSITIVE OR NEGATIVE, THAT IS, EARNING OR LOSING)
C. COST PLUS REWARD FEE CONTRACT (CPAF): COST REIMBURSEMENT + REWARD FEE (THE BUYER IS DETERMINED BY PERFORMANCE, AND THE ACTUAL IS PARTY A'S FEELING)
3) quantity contract: that is, the unit price contract, the contract stipulates the unit working hour cost standard and the unit material cost standard. suitable for projects where the nature of the work is clear and the scope of the work is clear, but the workload cannot be determined. the buyer bears the risk of changes in workload and the seller bears the risk of the unit price. it can be used effectively on projects with small amounts, short construction periods and uncomplicated projects.
2. basis for selecting the type of contract:
(1) the scope of work is clear, the design has detailed details, and the total price contract is used (the seller's cost is risky)
(2) the nature of the work is clear, but the scope is not clear, and the work is not complicated, and it needs to be signed quickly, using a quantity contract
(3) the scope of work is not clear, and the cost compensation contract is used (the buyer's cost risk is the greatest)
(4) both parties share the risk and use the quantity contract
(5) the buyer bears the risk and uses the cost compensation contract
(6) the seller bears the risk and uses the total price contract
(7) purchase standard products, and the quantity is not large, using unilateral contracts
3. contents of the contract:
(1) project name
(2) content and scope
(3) quality requirements
(4) plan, schedule, location and method
(5) various time limits in the construction process of the project
(6) confidentiality of technical information and information
(7) assumption of risk liability
(8) attribution of technical achievements
(9) acceptance criteria and methods
(10) price, remuneration and method of payment
(11) compensation for losses for breach of contract
(12) methods of dispute resolution
(13) explanation of noun terms
4. supplementary clauses of the contract:
(1) relevant documents
(2) agreement on project changes
(3) technical support services: technical fees, if there is no agreement, you need to charge separately.
only by mastering the contract classification can we use it freely in contract signing and project procurement and reduce project risks.
No comments:
Post a Comment