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Minimum Contract Contents A description of the project for which the client is seeking services. A description of the services to be provided by the architect to the client. A description of any basis of compensation applicable to the contract and the method of payment agreed upon by both parties. Written Contract Requirement | California Architects Board - CA.gov ca.gov ? licensees ? written_contract_re... ca.gov ? licensees ? written_contract_re...
For example, a pharmaceutical company might hire a research lab to develop a new drug. Due to the unpredictable nature of scientific research, the company would agree to cover all actual costs (like labor, materials, and other research-related expenses) plus a fixed fee for the lab's expertise and effort.
Cost-plus contracts may also be known as cost-reimbursement contracts.
A: As an example, a cost-plus contract may establish that the total estimated cost of a building project is $10 million plus a fixed fee of $1.5 million, roughly 15% of the total cost, as the contractor's profit. So the total expense to the buyer would be approximately $11.5 million ?the cost plus the fee. Cost-Plus Contracts Defined | NetSuite netsuite.com ? accounting ? cost-plus-contract netsuite.com ? accounting ? cost-plus-contract
The completion form of a cost plus fixed fee contract usually requires the contractor to deliver the expected product within the target cost to receive payment of his or her entire incentive fee, if at all possible.
Architecture Contracts are the joint agreements between development partners and sponsors on the deliverables, quality, and fitness-for-purpose of an architecture. Successful implementation of these agreements will be delivered through effective architecture governance (see Architecture Governance). Architecture Contracts opengroup.org ? togaf8-doc ? arch ? chap25 opengroup.org ? togaf8-doc ? arch ? chap25
Examples of a fixed-price contract The purchase of inventory or office supplies for a specific price. The purchase of a vehicle or contract for vehicle repairs. Hiring an advertising agency to create a logo for a set price. Paying a company $4,000 to design a website.
The employer has control over any design elements of the project that are included in their requirements, but once the contract is let responsibility over design passes to the contractor, so the employer has no direct control over the contractor's detailed design. Design and Build - The Joint Contracts Tribunal jctltd.co.uk ? products ? procurement jctltd.co.uk ? products ? procurement