Types of SUPPLIES Contracts July 2005

Types of Contracts – Lump Sum They can be used in straight forward cases where the outcome is very clear, with definite quantities and no additional requirements are to intervene during project implementation. In the case of lump-sum the Supplier will be only paid if the specified outcome is achieved.

Types of Contracts – Unit Price They are to be used in cases where quantities may vary, or additional issues are to be provided for the successful project completion (e.g. manuals, training). In the case of lump-sum the Supplier is paid on the quantity of successfully delivered supplies.

Types of Contracts – Hybrid They are to be used in rather rare cases where some distinct parts of the whole Supply contract can be described in one of the previous ways. Particular attention is to be granted for clearly defining the terms for each part of the contract.

Types of Contracts – Works against Supplies - In some cases, there are supplies requiring a considerable amount of works for their installation. In certain conditions, especially where the related works are of a significant amount, it may be far easier to control the contract implementation through a Works* contract. Note*: A “Works” training session will be also presented in the near future.

Types of Contracts – Selection When selecting any of the previous types of contract, attention should be paid to: the actual existing conditions. the sought conditions after the contract implementation. the potential contract implementation course – always allow for flexibility the contract management capacities of Contracting Authority / Beneficiary. previous experiences – capitalise knowledge.