Service finance contractor login1/5/2024 ![]() ![]() In such cases, each item or each section of the contract should have a clear method of measurement and verification: global price or fee-based. Some contracts may combine global price and fee based. In most cases the whole contract is set out in the form of either a global price contract or a fee-based contract. A service consultant also has a duty of care under the contract: it must warn the contracting authority in good time of anything that might affect the proper implementation of the project. The contractor should, however, contribute to improve the performance of the institution she/he is seconded to. ![]() For instance, the contractor is responsible for implementing the tasks entrusted to it in the terms of reference and ensuring the quality of the services provided. Technical assistance contracts often only specify the means. Project supervision, technical assistance, facilitation in a multi-stakeholder process (depending of the complexity of the environment). An example could be a fee-based contract for training, where the trainings would be paid on a fee-based basis, and where the development of the training material would be paid on a lump sum basis. Where the output is unpredictable, or where the workload to achieve the specified output is impossible to quantify in advance, fee-based contracts are more appropriate, as it is economically more advantageous to pay the services on the basis of time actually worked.įee-based contracts may also include activities paid on the basis of lump sums. Studies include a variety of tasks like identification and preparation of projects, feasibility studies, economic and market studies, technical studies, drafting a legal document, evaluations and audits. Studies, evaluations, audits, organisation of events such as conferences, training sessions. However, during and after the implementation, the technical and operational means by which the contractor achieves the specified output(s) are not relevant for the satisfactory implementation of the contract. Where several results are to be achieved, the tenderers must provide in their offer a detailed breakdown in order to compare the offers and check if no input has been forgotten. The contracting authority will provide the maximum budget available on the basis of the expertise required or the required category of staff and the number of working days needed, including where necessary travel costs and per diem. Timesheets for experts or supporting documents for expenses incurred will not be requested to process payments since global price contracts do not entail any reimbursable expenses/incidental expenditure and are not subject to an expenditure verification. ![]() the deliverables could be related to the progress inception report/interim report/final report or to the different parts of a study/report/event) depending on the project in question. Indeed, the financial offer for a global price contract may include - where requested, see below - a price breakdown based on outputs/deliverables against which partial payments can be made (e.g. The contractor might be requested to submit a breakdown of price per deliverable. ![]() minimum number of experts (unless Key experts are requested) or a fixed list of expenses. The project manager must not request in the terms of reference a breakdown of inputs for a global price contract, e.g. Partial payment has to be determined according to the partial implementation of the output(s). Payment(s) is/are based on the approval of this/these deliverable(s). Payments might be totally or partially withheld if the contractual result(s) have not been reached in conformity with the detailed terms of reference. The service will be paid on the basis of the delivery of the specified output(s). the contractor must provide given output(s). Global price always specify the output(s), i.e. Global price is a lump sum contract where specified output(s) is/are set out, in the form of clearly defined deliverables like a report or drawings. Types of service contractsĪ service contract may be concluded in two different ways: 3.2.1. Service contracts are meant for studies, technical assistance and are also used for audits or communication services.Ī study contract is a service contract concluded between a contractor and the contracting authority, which includes studies for the identification and preparation of projects, feasibility studies, economic and market studies, technical studies and audits.Ī technical assistance contract is a service contract where the contractor is called on to play an advisory role, to manage or supervise a project, or to provide the expertise specified in the contract. ![]()
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