I just saw the series of e-mails exchanged. I have a fundamental disagreement on one of the points raised by a reader, that is, with respect to the PTA. I think the PTA is a variant not of FPIF (as the textbooks want us to believe), but of CPIF, the simple reason is that if we cannot speak of “incentives to save on TARGET COSTS”, on the one hand, and “fixed price” on the other, in the same breath. This raises the question: “What then are the INCENTIVEs of the FPIF?” My answer is that FPIF incentives are limited to “time savings” (i.e. past deliveries) and would not include those for “material cost savings” – they would be listed as “bonuses.” On the other hand, a delay in delivery would result in the recovery of the liquidated damages. I touched on this in the monthly newsletter of the Bangalore PMI chapter last year, and almost all of them, including many academics, with whom I have spoken, agree with me. This is the simplest type of purchase contract. The seller must complete the work in an agreed amount and at the same time. The seller is responsible for any increase in costs and is legally required to complete the task as part of the agreement. Agreements. Any document or communication defining the initial intentions of a project. This can take the form of a contract, a declaration of intent (Memorandum of Understanding, MOU), agreements, oral agreements, e-mails, etc.
They use a fixed price with an economic price adjustment contract if the agreement is multi-year. This contract has a special provision that protects the seller from inflation. Let`s take our example of application. If you have entered into this agreement with a CPAF contract as a buyer, you set checkpoints as part of the project`s work to verify the quality, percentage of the conclusion, etc., to determine if the premium fee is paid. It is important to remember that these premium fees are exclusively at your discretion as a buyer. A contract is a mandatory agreement between a buyer and a seller. It is the key to the buyer-seller relationship and provides a framework for dealing with each other. The project management agreement is the agreement between the project manager and the employer or owner. The project manager acts as the owner`s agent and provides the services normally provided by a contractor who performs the tasks.
The contract. A binding agreement for both parties, which requires the seller to provide the indicated product or service or the stated result, and requires the buyer to pay for it. The concept of claim can be used in situations where a buyer violates the terms of the contract, which allow the seller to seek compensation for the breach suffered by the buyer. Problems can be solved in many ways, they can solve the problem through negotiation or through the use of the dispute resolution process. For a contract to be valid, there must be an agreement between the parties. In other words, you need an offer, acceptance of the offer and consideration (in this context, the legal default period for payment or money). Contracts must have a legal purpose and be concluded by a person with a delegated purchasing capacity or authority, usually a contract agent. Let`s go back to our car example. As a buyer, we say you want to make a seller a new type of energy efficient car, unlike any other on the market. You can`t just set the area because you`re not sure what kind of energy is being used, etc. As a buyer, you could enter into a T-M contract that says you pay up to $5 million for all the time and equipment. If the project crosses the border, it will not be repaid unless a new agreement is reached.