"Learning Notes" information System project management-project procurement management-contract classification

The contract can usually be divided into two major categories, and the total price and cost compensation category. There is also a third common type of contract, the mixed type of quantity contract.

lump sum contract, which sets a total price for the purchase of a given product and service.

1. Fixed price contract (FFP): The purchase price is determined at the outset and is not allowed to change.

2, the total price plus incentive cost contract (FPIF): Allow a certain performance is cheap, and to achieve the stated goals and financial incentives.

3. Total Price plus economic price adjustment contract (FP-EPA): This contract type should be used if the contract performance is to span a fairly long period of time. The EPA clause must specify a reliable financial index that is used to accurately adjust the final price.

Cost compensation contract. This contract pays the seller all legal actual costs incurred for the completion of the work, plus a fee as the seller's profit. The common three-medium cost compensation contract is as follows:

1, cost plus fixed cost contract (CPIF): for the seller to reimburse the performance of the contract for all the costs incurred, and to pay a fixed fee to the seller, the cost is calculated as a percentage of the initial cost estimate of the project.

2, cost plus incentive cost contract (CPFF): For the purchase of housing reimbursement for the performance of all the costs incurred in the work, and in the purchase of the contract to meet the performance objectives, to the seller to pay the predetermined incentive costs.

3. Cost plus incentive fee contract (CPAF): All the reimbursable costs incurred in the performance of the contract for the purchase of a house, but only if certain general and competent performance criteria of the contract summary are met, the majority of the costs can be paid to the seller.

Quantity contract, quantity contract is a mixed contract with some characteristics of cost compensation contract and lump sum contract.

"Learning Notes" information System project management-project procurement management-contract classification