1. Reply - Yes It happens when contractor's payment is to be made based on milestone basis and where delay from contractor's side concurrently delay from employer's side also during contract administration stage both parities contracts manager and PM don't sit to-gather to establish the delay attributed to which party, on other hand employer want the work to be completed with in laid completion dates. with found delay employ deploys third party manpower to complete work and adjust this cost from Contractor's Accounts under Employer's Claims.
2. Reply - can be replied based on type of contract is formed.
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I have not used Open Book contracts, but as I understand open concept is applied to cost part. The contractor will share real cost with owner and get certain agreed profit margin over it. The contractor is not promising to do cheapest. Same time the performance obligation is not dropped, and contractor is required to provide the quality and warranty, if applicable. Open book would not imply cheapest at no performance assurance.
• Air Liquide
Thank you for your contribution.
To go further, the Contractor is compensated according to the number of working hours, time an hourly rate. The hourly rate depends upon the country of origin of the employee.
The contractual manning plan specifies the country of origin, and therefore the rate.
However, it happens that the actual country of origin may be different than the one specified in the contract
The question is:
Knowing that we have an "Open Book" contract, does the contractor has an obligation to invoice with the rate as per the contract's country of origin rate, or according to the actual country of origin rate?
As illustration, the contract mentions a project manager coming from France, whereas he actually comes from China. Which rate shall be used?
Thank you in advance
• ExxonMobil Nigeria
In response to your latest post, I think in order to avoid any form of dispute or confusion, there has to be a revision/addendum to the contract to explicitly state the rates for different nationals.
I currently work on some contracts, not Open Book though but similar in scope and price structure to what you mentioned. In them, we have rates for Western expats, non- western expats and locals.
This makes it extremely easy for our contrcators to apply the right rate per personnel deployed for the service.
I hope this helps.
• Ministry of Defence
As said Open Book can have various interpretations. Commonly it means access to a supplier's financial information used for pricing.
I am a little surprised about the comment, presumably regarding the nationality of the Project Manager, either French or Chinese? I would have thought the ability of the individual is more important than the nationality and the contract would be priced on that basis? i.e. the services of a professional Project Manager.
• Air Liquide
You are correct, competence should prevail on Nationality (and then cost), but the client always want to get the cheapest, presuming that the competency is identical, which is clearly not always true.
Institute of Business Ethics www.ibe.org.uk/ International Labour Organization on child labour www.ilo.org/ipec/lang-en/index.htm Ethical Trading Initiative www.ethicaltrade.org/ UN initiative for businesses who want to align their operations with ethical practices www.unglobalcompact.org/
Terms are basically things that we agree to do or not to do. For example, a Tenant agrees to pay money for rent, while the Landlord agrees to let the Tenant occupy the property in return. Or a software company will let you use their software for a predetermined amount of time.
Conditions are items that must be satisfied before the transaction becomes binding upon the seller and the buyer. Or after signing/award, the conditions can be items for dissolution of the agreement.
For example, some buyers insert a condition for due diligence that allows the buyer to verify all important details before committing to purchase.
Or if you fail to deliver on or stick to what was agreed, the conditions can spell out how the contract will be terminated.