Contract penalties

Daily interruption cost— the cost associated with producing the final product. This could include raw material contract penalties and fixed costs (salary, maintenance, taxes) for the plant. 

Risk Management Contract penalties Incentives and penalties Incentives and information linkages Process management, shared risk/reward... 

A comfortable margin is maintained between the flowing tubing head pressure (downstream of compression) and the minimum pressure required for export, since the penalties for not meeting contract quantities can be severe. The decision not to install a fourth stage of compression in the above example is dictated by economics. During the final part of the pressure decline above, the field production is of course also declining. 

Lump Sum contract contractor manages and executes specified work to an agreed delivery date for a fixed price. Penalties may be due for late completion of the work, and this provides an incentive for timely completion. Payment may be staged when agreed milestones are reached. 

The CaO content of commercially available quicklime can vary quite widely over an approximate range of 70 percent to 96 percent. Content below 88 percent is generally considered below standard in the municipal use field. Purchase contracts are often based on 90 percent CaO content with provisions for payment of a bonus for each 1 percent over and a penalty for each 1 percent under the standard. A CaO content less than 75 percent probably should be rejected because of excessive grit and difficulties in slaking. 

The contract could include a penalty clause for noncompletion by the contractor, and paid by him, as well as a bonus clause paid by the client to the contractor in the event that he completes his contract on or before the agreed completion date. This bonus clause can be on a reducing scale (say, from 75 per cent of the time onwards). 

Water. Costs are available from the supplier s invoices but where the operator has reservoirs and/or licenses for extraction from canals or rivers the annual fees and penalties, which are sometimes taxable, should not be forgotten. Projections of future demands will need to be carefully considered where this type of arrangement is made, since such contracts are often available only on long-term bases. Water-treatment plant will produce its own range of costs across the whole field of depreciation, materials, electricity, labor, etc. and these will need to be apportioned to the steam cost departments before final allocation to the user departments. 

Verbal agreements with retailers for the supply of organic beef or lambs were made a year in advance. This allowed time for the management and growth of the necessary stock. Stock were sold to the retailer directly from the nearby abattoir. This meant there were no delivery or collection charges for Chisel Farm. The then manager, Karl Barton, maintained that verbal agreements were more satisfactory than written contracts, which often contain hidden penalties. 

Considering the remote location of JACADS, the problems involved in coordinating multiple contractors on the island, and the time and cost penalties inherent in educating another contractor, continuation of the operating contract (with appropriate changes to accommodate closure) appears to be justified. With the benefit of the lessons learned at JACADS, the use of another operations contractor to perform site closure at continental U.S. sites should be considered. The best strategy to employ will depend on site-specific considerations. 

Rules on the most important cases of conflict in question should be provided for in the contract warranty provisions, contractual penalties, etc. 

The tender, contract, order/delivery dates, and penalties are agreed upon and accepted. 

Contracts for acetylene-grade carbide are usually based on size and gas yidd specification, and indude penalties for carbide that fails to meet specified gas yidd. The sizes generally available in the trade are based on established U.S. Government specifications. In general gas yidds range from 280—300 L/kg and depend on the screen size of the carbide. The most important standard is the method of expressing gas yidd, which in the United States is at 15°C and 101 kPa (1 atm). Gas impurities are typically 0.05% by volume phosphine, 0.15% by volume hydrogen sulfide, and 0.001% arsine. 

Additionally, contracts may be negotiated for payment or milestones. This challenges the vendor to keep to the time line and complete the tasks in order. Incentives for completing work early can be included. Penalties for nondeliverables or the cost for nonconformance can also be defined. This provides an incentive for the vendor to reach and maintain an appropriate level of compliance. 

Lost sales unless there is a contract with a penalty... 

U.S. regulatory ramifications for non-compliance include invoking the application integrity policy (for fraud), serious inspection observations, a warning letter, import alerts, withheld research and/or product approvals, cancellation of government contracts, product recalls, seizure, consent decree of permanent injunction, civil money penalties, suspension or revocation of licenses, and prosecution (including indictments and temporary or permanent debarment, if found guilty). ... 

Regular audits of the contractor s activities and procedures give confidence to the owner that the contractor is likely to achieve the required performance targets. There may also be financial incentives included in the contract to encourage the O M contractor to meet the desired level of performance and, conversely, penalties for nonachievement. 

When a publishing house (Izdatelstvo) plans to issue a book, monograph, journal, or other printed material, the Glavizdat provides it with information about the possible volume of sale derived either on the basis of a survey or past performance. The format, size of the edition, required paper, ink, and binding supplies are worked out, and time schedules are set for the delivery of the product by the publisher to the Glavizdat. The date of delivery, quality, packaging, etc., are embodied in a contract secured by penalty clauses. The Glavizdat supplies... 

The penalty function is evaluated for all sets. The worst point is then selected and reflected through the centroid of the remaining points, yielding a new simplex. If the new point yields an even better result than the previous best point, an expansion is attempted. The expansion is accepted only if the result is better than for the simple reflection. If, on the other hand, the new point would be the worst in the new simplex, one of two possible contraction points is selected instead. Note that the contraction must always be accepted if not, the simplex will just oscillate between two bad points. 

There may be a lack of in-house expertise resulting in the need to contract out the work or the need to develop an in-house capability. Alternatively, there may be a lack of in-house facilities or equipment to handle the candidate drug. These issues need to be resolved quickly or else time penalties could be incurred. Other areas of risk include the sources of excipients and packaging components. Some excipients or packaging components may only be available from one supplier, with the risk that the supplier could go out of business. 

Power Factor. Most public utilities have a clause in their power contracts requiring a plant with low power-factor loads to pay a penalty charge or an increased rate the power factor of a motor represents the percentage of the load or power current to the total line current. The line current is made up of magnetizing or reactive current and power or active current. This reactive current represents just as real a burden to the power system as the active or load current, even though it does... 

The most important economic characteristic of Contractual Psychiatry is that the contractual psychiatrist is a private entrepreneur, paid for his services by his client its most important social characteristic is the avoidance of force and fraud (and the existence of legal penalties for their use). The relationship between contractual psychiatrist and patient is based on contract, freely entered into by both, and, in general, freely terminable by both (except where the therapist relinquishes some of his options in this regard). The contract consists of an exchange of psychiatric services for money. In short, whereas the institutional psychiatrist imposes himself on his patients, who do not pay him, do not want to be his patients, and are not free to reject his help — the contractual psychiatrist offers himself to his patients, who must pay him, must want to be his patients, and are free to reject his help. 

For my part, as good as the definitions are, only Holstein comes close to the pivotal ingredient—the payer-provider relationship. My belief is that DM functions best when it is the product of a binding contract that is based on whole treatment protocols that have regard to quality and efficiency and that are delivered in a way most appropriate for patients. They are also founded in rewards for success and penalties for failure. I see DM as more than a management tool. I believe it to be a management lever—for change. 

In the present model of healthcare the commissioners have few carrots and even fewer sticks to employ. A DM contract can provide for excellent performance, such as disease reduction and savings, to provide the rewards. Penalties for poor performance, such as unplanned admission to hospital or quality failures, become the stick. 

Is it true that vice versa DM could advance the use of IT in the management of information in health care The answer is, most definitely. This conclusion is based on the assumption that the DM programme will be the consequence of a contract between a health commissioner (or payer) and the service provider. The contract will call for a specific treatment protocol or a guideline to be followed. The contract will include the calculation for payment based on the number of patients treated, and how, and with what. The contract will certainly call for monitoring and evaluation, and finally will undoubtedly include some instrument for the calculation and evaluation of outcomes, including distribution of savings, or penalties for breakdowns or unexpected events. 

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