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Prepared By-Upadhyay Nishit
 When any company attempts to any project, it should assigned to
the parties which helps to mitigate the project risk & best able to
assess.
 Some large Projects are being executed by the external contractors.
 The contractors of any project will agree to assume risk at a
reasonable price if they understand risk clearly.
 A contract is an agreement to maintain the relationship between the
customer and contractor to ensure project success.
 It is a agreement between the contractor ,who agree to provide a
product or service, and the customer, who agree to pay the
contractors a certain amount in returns.
There are three basic types of contracts.
Fixed price or lump sum contacts
Cost reimbursement contracts
Time and materials (T&M) contracts
Cost-
reimbursement
Customer Contractor
Low
Risk
High
Risk
High
Risk
Low
Risk
Fix Price
Project sponsors
Special purpose vehicle
Project lenders
EPC Contractors
O & M Contractor
Government
 Misrepresentation of cost
 Notice of cost overruns or schedules delay
The document submitting to customer in a writing for both the
reason and a plan for corrective action to get the cost back within
budget or the schedule back on track.
 Approval of sub contractors
 Customer furnished equipment or information
List the items that the customer will provide to the contractor
throughout the project and the dates by which the customer will make
these items available.
 Patents
 Discloser of proprietary information
Prohibits one party from disclosing to anyone else or using for any
purpose other than work on the project confidential information,
technologies
 International consideration
oSpecification accommodations that must made for customer from other
countries.
oSpending a certain percentage of a contract costs for labor or materials
within the customers country.
oProviding project documentation, such as manuals and reports, in the
customer’s language
 Terms of payment
 Bonus/Penalty
 Change
Covers the procedure for proposing, approving and implementing
change to the project to the project scope or schedule
 Termination
Project contracts

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Project contracts

  • 2.  When any company attempts to any project, it should assigned to the parties which helps to mitigate the project risk & best able to assess.  Some large Projects are being executed by the external contractors.  The contractors of any project will agree to assume risk at a reasonable price if they understand risk clearly.  A contract is an agreement to maintain the relationship between the customer and contractor to ensure project success.  It is a agreement between the contractor ,who agree to provide a product or service, and the customer, who agree to pay the contractors a certain amount in returns.
  • 3. There are three basic types of contracts. Fixed price or lump sum contacts Cost reimbursement contracts Time and materials (T&M) contracts
  • 5. Project sponsors Special purpose vehicle Project lenders EPC Contractors O & M Contractor Government
  • 6.  Misrepresentation of cost  Notice of cost overruns or schedules delay The document submitting to customer in a writing for both the reason and a plan for corrective action to get the cost back within budget or the schedule back on track.  Approval of sub contractors  Customer furnished equipment or information List the items that the customer will provide to the contractor throughout the project and the dates by which the customer will make these items available.  Patents
  • 7.  Discloser of proprietary information Prohibits one party from disclosing to anyone else or using for any purpose other than work on the project confidential information, technologies  International consideration oSpecification accommodations that must made for customer from other countries. oSpending a certain percentage of a contract costs for labor or materials within the customers country. oProviding project documentation, such as manuals and reports, in the customer’s language
  • 8.  Terms of payment  Bonus/Penalty  Change Covers the procedure for proposing, approving and implementing change to the project to the project scope or schedule  Termination