Types of Contracts1

7/17/2019 Types of Contracts1

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CONTENTS

Introduction

Types o !ontracts

"u#p $u# !ontracts

Ite# %ate !ontracts

!ost P&us !ontracts

B'T Type !ontracts

%eerences


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INTRODUCTION

()ery pro#ise and e)ery set o pro#isor#in+ t,e consideration or eac, ot,er Agreement.

An A+ree#ent enorceab&e by &a- Contract.

!ontract . o/er acceptance considera


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LUMP SUM

T,e en+ineer andor contractor a+rees to do t,e a des

and specied pro3ect or a 4ed price A&so na#ed 7ee !ontract6

8uantities o t,e ite#s do not or# part o contract

'ne price or t,e -,o&e contract

"u#p su# inc&udes costs p&us o)er,eads and prots

Hi+,er ris9 to contractor

7u&&y de)e&oped p&ans and specications


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LUMP SUM ADVANTAGES

(cono#ica&

7i4ed A#ount

$peedy (4ecution o -or9

o #easure#ent o ite#s o -or9

"o- ris9 on t,e o-ner* ,i+,er ris9 tocontractor


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LUMP SUM DISADVANTAGE'S

;nba&anced


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ITEM RATE

Based on esti#ated =uantities o ite#s inc&uded in t,e pro3e

t,eir unit prices Pay#ent to contractor is based on t,e #easure

Idea& or -or9 -,ere =uantities can not be accurate&y estabeore construction starts

>enera&&y o&&o-ed or #ost o pub&ic -or9s by t,e >o)ern#ent

Ti#e ? cost ris9 @s,ared

'-ner : at ris9 or tota& =uantities

!ontractor : at ris9 or 4ed unit price


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ITEM RATE ADVANTAGES

$uitab&e or co#petiti)e bid

(asy or contract se&ection

(ar&y co##ence#ent o -or9

7&e4ibi&ity : 8uantities and scope can be ea

ad3usted o e&e#ent o uncertainty


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ITEM RATE DISADVANTAGE'S

Tota& cost o t,e -or9 un9no-n


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COST PLUS CONTRACTS

Actua& cost p&us a ne+otiated rei#burse#

to co)er o)er,eads and prot

$uitab&e -,ere bot, 8ua&ity and 8uantitt,e -or9 un9no-n

7re=uent 7&uctuations in #ar9et rates

Adopted or pri)ate -or9s


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COST PLUS CONTRACTS

Di/erent #et,ods o rei#burse#ent :

!ost 4ed percenta+e

!ost 4ed ee

!ost 4ed ee protCs,arin+ c&ause

!ost 4ed ee bonus

!ost 4ed ee pena&ty

!ost Variab&e percenta+e


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BOT

Bui&do-ntranser

T,e pri)ate sector entity bui&ds and operates t,e aci&ity or an a+reed period o ti#e

Pri)ate entity ,as t,e responsibi&ity to raise t,e and is entit&ed to retain a&& re)enues +enerated bpro3ect durin+ t,is ti#e

At t,e end o t,e ti#e period* t,e pri)ate entity trat,e aci&ity o-ners,ip to t,e >o)ern#ent


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BOT

(ncoura+e pri)ate in)est#ent

Transer o tec,no&o+y and 9no- ,o-

Pro)idin+ additiona& nancia& source or opriority pro3ects

%e&easin+ t,e burden on pub&ic bud+etinrastructure de)e&op#ent


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BOOT

Bui&do-noperatetranser

Pri)ate entity o-ns t,e -or9s

$uitab&e or inrastructure pro3ects ,i+,-ays* po-er +eneration* rai&-ay transetc


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BOO

'-ners,ip o t,e pro3ect re#ains usua&&y -it

pri)ate entity

Pri)ate entity +ets t,e benets o any res)a&ue o t,e pro3ect

"ar+e a#ounts o nance and &on+ paybac9 pe

(4a#p&e: Eater treat#ent p&ants and #obi&e pnet-or9


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BOLT

Bui&dCo-nC&easeCtranser

Pri)ate entity #aintains t,e property ri+,ts a)oidin+ operationa& ris9

Pri)ate entity -i&& &ease t,e aci&ity to t,e >o)ern#

Pub&ic entity pays t,e &ease c,ar+es or a sp

period and on t,e co#p&etion o t,e &ease perioaci&ity is transerred to t,e pub&ic entity


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BOOST

Bui&do-noperates,aretranser

$i#i&ar to B''T e4cept t,at t,ere e4istarran+e#ent o s,arin+ t,e re)enue topri)ate entity or a &on+er ti#e e)en ateri+,ts o t,e pri)ate entity is transerred to

pub&ic entity


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,ttps:en-i9ipediaor+-inde4p,pFtit&e.B

&doperatetranser?o&did.G0J0J0 !ontract


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THAL Y'

Types of Contracts1

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