FREE ESSAY ON CONTRACTS

CONTRACTS

Lump Sum Contract
A defined lump sum plan expresses employees' pension benefits as a lump sum amount, which
makes it easy for them to understand and appreciate the benefits. In many cases, the
plans also allow employees to accrue larger benefits at younger ages than they would
under a traditional pension plan. And, increasingly, defined lump sum plans provide
portable benefits that employees can take with them if they leave the company before
retirement age.
Cost plus percentage contract:
Cost-plus construction contracts are often used for projects in which an owner or
developer wishes to retain flexibility in selecting construction materials or modifying
the design during construction. Unless specifically described in the contract, the
contractor and the owner/developer may have a different perception of what types of costs
are reimbursable to the contractor. The cost-plus contract should include a section
defining all of the types of costs that are reimbursable by the owner/developer, and most
standard form contracts include such provisions.
Cost plus fixed fee contract:
A cost-plus-fixed-fee contract is a cost-reimbursement contract that provides for payment
to the contractor of a negotiated fee that is fixed at the inception of the contract. The
fixed fee does not vary with actual cost, but may be adjusted as a result of changes in
the work to be performed under the contract. This contract type permits contracting for
efforts that might otherwise present too great a risk to contractors, but it provides the
contractor only a minimum incentive to control costs.
Design and build contract, also known as package deal and 'turnkey contracts
Turnkey drilling services offer a viable method for operators to better man age drilling
risks and reduce costs. In the future, they may be able to utilize drilling management
contractor services for complete field development programs. The offshore turnkey
drilling industry remained a high-margin, low-volume business until about 1993 when
turnkey drillers began to realize bidding prices were not competitive with most
operators' internal cost estimates. Increasing market share could only be achieved by
reducing margins to match the real competition, which is the operator's AFE (authority
for expenditure). Since then, the number of offshore turnkey wells has increased almost
every year.
However, the future of the offshore drilling management services industry involves moving
beyond merely providing a well or a completion for a fixed price. It means working with
an operator and other service companies to provide a range of services for complete field
development, from drilling and completion to facilities design, installation, and field
management through depletion.
Construction management contract plans.
Construction management or construction include courses in project control and
development, site planning, design, construction methods, construction materials, value
analysis, cost estimating, scheduling, contract administration, accounting, business and
financial management, building codes and standards, inspection procedures engineering and
architectural sciences, mathematics, statistics, and information technology.