If your credit card agreement states that it uses the Consumer Financial Protection Office`s definitions of credit card terms, for each word or phrase in your underlined credit card agreement, the definition will be defined in the terms defined below. (2) A fixed-cost-plus contract should not normally be used for the development of larger systems (see Part 34) once the preliminary exploration, studies and risk mitigation have shown a high degree of likelihood that the development will be feasible and the government has set reasonably firm performance targets and timelines. Unlike set-off or counterclaim, reduction is a means of reasonably reducing the price of a contract if full payment cannot be justified. The reduction is actually an adjustment to the contract price. Notification is not necessary for mitigation measures to be effective. However, it is the responsibility of a paying party to clearly define the basis for price adjustment. For example, the quality of the work may not correspond to the requirements of the contract (for example.B. the coating could have been installed with a varnish while a powder-coated surface is indicated), or the laying area may be smaller than that indicated in the drawings. The paying party may insist that the powder-coated equipment or the entire extent of the paving be installed, or it may reduce the cost price and accept non-conforming work as a price reduction. In YCW contracts, the paying party may make a so-called «reasonable deduction» to compensate for the non-compliance. Cost-plus contracts can be divided into four categories.
They allow the reimbursement of expenses as well as an additional amount for profit: we calculate the «daily balance» for each balance. To do this, we start with the initial amount of this balance for each day. We add up all new charges for that day, add all interest to the previous daily balance if there is one in that billing cycle, and deduct any payments or credits. This gives us «daily balance». The billing period is the fixed period covered by the invoice we send you. The invoice shows your new fees, including interest and fees, as well as any payments recorded in your account during that period. Each invoice we send identifies the billing period it covers. Suppose ABC Construction Corp. has a contract for the construction of an office building for $20 million, and the agreement stipulates that the cost must not exceed $22 million.
ABC`s profit is agreed at 15% of the total contract price of $3 million. In addition, ABC Construction is entitled to an incentive fee if the project is completed within nine months. The authorized fee is any fee that you or an authorized user charges to the account, as well as any fees and interest due on the account. The above project uses the percentage of the closing process to account for profits and send invoices to the customer, and the contract includes specific percentages for invoicing. b. the Contractor`s costs of remedying the defect (including amounts to be paid to third parties mandated by the Contractor); or Paul Gogarty – Consulting Director, Driver Trett examines the different methods and approaches for contra-invoicing, offsetting, counterclaim and mitigation and their application in the context of construction contracts. (1) A fixed cost plus fee contract may be used if the conditions of 16.301-2 are met and e.B. (1) The filling form describes the scope of the services by specifying a specific objective or objective and specifying a final product.
This form of contract usually requires the contractor to complete and deliver, if possible, the specified final product (e.g. B a final report on the research that achieves the objective or objective) within the estimated cost and, if possible, as a condition of payment of the full fixed fee. However, in the event that the work cannot be completed within the estimated cost, the government may require more effort without increasing the cost, provided that the government increases the estimated cost. The administration fee and annual contract fee displayed on the contract data page(s) will pay us the administrative costs of the contract. In a typical project where there are contracts between prime contractors and subcontractors and the damage is caused by subcontractor A to subcontractor B`s work on a construction project, repair costs are often claimed by A against the prime contractor. In return, the prime contractor will claim the costs claimed by A with a surcharge for its own administrative costs and sometimes costs caused by a delay or disruption by compensation with B. Indeed, there is contractual confidentiality between A and B (where the parties to a contract can sue each other, but not third parties) to allow the assertion or payment of costs between them. We all know of a typical event in which damage occurs during the installation of mechanical, electrical or public health services, e.B suspended ceilings or dry line partitions, as these latter work is carried out late or out of service. Authorized charges may be made over the phone, in person, over the Internet, or in any other way your account may be used. Using this method, we calculate the interest cost for each balance by applying the «daily periodic interest rate» for that balance to the «average daily balance» of that balance.
We multiply the result by the number of days in the billing cycle. This gives us the total cost of interest for that balance for that billing period. (2) The term form describes the scope of services in general and requires the contractor to devote some effort for a certain period of time. If performance is deemed satisfactory by the Government, the fixed fee is payable after the end of the agreed period if the contractor declares that the effort specified in the contract has been devoted to the performance of the contract work. The extension for other periods of service is a new acquisition that involves new cost and fee agreements. Some contracts may limit the amount of reimbursement, so not all expenses would be covered. This applies in particular if the contractor makes a mistake during the course of the project or proves to be negligent in any part of the construction. The annual contract fee is a fee for administrative costs. For each underlined word or phrase, the following definition is part of your contract with your credit card issuer. We put the fees resulting from a particular commission in the same balance as those specific fees.
For example, we add foreign transaction fees that we credit to a cash advance in your cash advance balance. We will set a fee in your purchase balance that does not result from specific charges, such as a fee of . B of refund. Cost plus contracts are also used in research and development (R&D) activities, where a large company can outsource R&D activities to a smaller company, for example a large pharmaceutical company that contracts. B e the laboratory of a small biotechnology company .. .