Prepared By-Upadhyay Nishit

A PRESENTATIONON PROJECT CONTRACTS

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.

What is Project contract???

There are three basic types of contracts.

Fixed price or lump sum contactsCost reimbursement contractsTime and materials (T&M) contracts

Types of contracts

Cost- reimbursement

Types of contracts

Customer Contractor

Low Risk

High Risk

High Risk

Low Risk

Fix Price

Project sponsors Special purpose vehicleProject lendersEPC ContractorsO & M ContractorGovernment

The Parties involved in

Project Contracts

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

Provisions of the contracts

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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 considerationoSpecification 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

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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

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