Please enable JavaScript.

Coggle requires JavaScript to display documents.

procurement mgt (control procurements (TT: contract change control system,…

- - - - Q: 1st phase payment not paid, 2nd phase start, vendor infringe at Phase 2
        A: still settle 1st payment, then sue the vendor
        cuz buyer cannot infringe due to seller infringe
- - - - Q: an essay, which contract type you use / better use?
        Q: which contract to open to achieve lowest risk for buyer?
        Q: which is the best contract for buyer?
      - fixed price contracts
        
        lump sum contract = one-time cost - extra cost absorbed by vendor
        but not limited to or etc
        pro: buyer jetso, zero risk (even worst ending), not count
        con: high vendor quote (high vendor buffer) sky price, high deposit
        legal bid: spec-in reqt
      - contract reimbursable contracts
        
        actual cost + a fee
        initial cost - sky high
        pro: no vendor
        con: high risk to buyers, increase PM admin work, increase verification quotations good for less-exp PM
      - time and materials (unit price)
        
        cost-reimbursable (open-ended): no ceiling price
        fixed-price type arrangements
        CR + FP: low risk
        pro: know unit $, know max project lead time
        con: short-term contract, e.g. home renovation
      - firm fixed price contracts (FFP)
      - fixed price incentive fee contracts (FPIF / FPI)
        
        align buyer + seller benefit -> buyer pay less, seller earn more -> incentive incur risk
        fixed ceiling price
      - fixed price with economic price adjustment contracts (FP-EPA)
        
        inflation, exchange rate -> very high risk -> fixed inflation and exchange rate
        assumption for long-term contract (3-5 years)
      - cost-plus-fixed-fee (CPFF)
        
        not good for buyer cuz may need to pay full for bad contract
      - cost-plus-incentive-fee (CPIF)
        
        good opportunity to have incentive
      - cost-plus-award fee (CPAF)
        
        subjective determination of seller performance
        only seller have jetso
        buyer risk: may pay more
      - cost plus percentage of costs (CPPC)
        
        very high risk to buyer
      - (Buyer high risk) CPPC > CPFF > CPIF > FPI > FFP
      - [CPIF contract] final price = actual cost + total fee
        [FPI contract] final price = actual cost + target profit + (target cost - actual cost) x seller ratio (%)
      - PTA (point of total assumption) = ((ceiling price - target price) / buyer sharing ratio) + target cost
        
        A point that I won't pay anything wen the vendor finds me
        not yet arrived ceiling price
- - - - hold an amount during project or even upon project end
        reimbursement after nursing period e.g. 15%
        US: retainer per phase e.g. 5% x 3 = 15%
    - - Q&A: 3rd party judge, no need to go court
- - - - Q: diff between internal and external SOW?