Unit price contracts

Cracks Treated with Acrylate Grout Payment will be made for cracks treated successfully with Acrylate grout at the Contract Unit Price per lineal foot as measured and specified in 3G5.0(a) (2) above. 

In custom manufacturing, supply contracts are product-based (unit price in /kg), whereas in contract research agreements they are service-based (FTEs in /scientist-year). The two types of contract are discussed in more detail below Agreeing on the price for a fine chemical is only one, albeit essential, element of a custom manufacturing deal between the supplier (fine-chemical company) and the customer (specialty-chemical company). The supply... 

In some marketplaces and under many contract bid situations, there is an unfortunate tendency by some buyers to purchase water treatment programs based solely on the chemical product unit price, or to select only the lowest priced vendor, without consideration of any other factors. This practice is undertaken for various reasons. It may be, perhaps, because of cultural differences in negotiating practice, or because of simple ignorance of the value of the service supplied, or the belief that all chemical formulations are the same, or, alternatively, a failure to comprehend the concept of matching an overall and comprehensive service program specifically to a customer s needs. 

When buyers wish to see only the chemical unit price, or if they accept ultralow bids, or force contract prices downward too much, they are misleading themselves and their companies, when they believe they are doing a good job. If the contract price offered or demanded is too low or fails to allow for adequate services, both the vendor and the buyer (especially the buyer) will inevitably be plagued with problems. 

Most important subcontracts, indicating type of contract (lump sum/ reimbursable, unit price, competitive/negotiated). 

The unit price contract is a viable alternative to lump sum and permits contracting, and even starting construction work, with minimal engineering. Unit price contracts should be converted to lump sum as soon as possible based on take-offs developed from the final design drawings. 

IN THAT CASE, THE RECOMMENDED APPROACH WOULD BE A MODIFIED REIMBURSABLE EPC CONTRACT REQUESTING THAT THE CONTRACTOR EXECUTE CONSTRUCTION THROUGH COMPETITIVE LUMP SUM OR UNIT PRICE SUBCONTRACTS. 

EXECUTE CONSTRUCTION ON A HARD MONEY COMPETITIVE BASIS. EITHER THROUGH LUMP SUM UNIT PRICES CONTRACTS OR A COMBINATION OF THE TWO. 

Drug pricing—The prescription information is matched with a listing of per unit price, as dictated by PBM purchase contracts with pharmaceutical companies. 

Electric Rate - The unit price and quantity to which it applies as specified in a rate schedule or contract. 

Consider a supply chain with a supplier and a retailer who faces a Gamma demand with mean 400 and coefficient of variation 0.5. The supplier procures the good at a unit cost c = 15 and the retailer sells at a unit price r = 20. Any unsold unit has a salvage eost v = 8. The terms of trade between the supplier and the retailer are speei-fied by a QF contract. Both the supplier and the retailer adopt the satisficing objective. The target profits for the supplier and the retailer are set at = 1200 and = 800, respectively. 

To protect against the downside market risk, the buyer may implement a buy-back contract to share the risk of unused items with the supplier. This would permit the buyer to return unsold or unused goods to the supplier at a unit price negotiated by the two parties. 

In a cost-plus contract the buyer agrees to pay a certain percentage above the supplier s actual unit cost. This insulates the supplier against all cost escalations, and provides little motivation for him to improve productivity. In projects such as R D a cap on unit price is applied, as the buyer may be unable to estimate how much work is needed. This contract has no built-in incentive for the supplier to cut cost. 

The price of lignite pet mined ton or pet heat unit is lower than that for higher rank coals. The market for all coals is primarily as boilet fuel for electric power production. Prices ate generally estabUshed by contracts between utiUty and suppHet before mining begins. 

If utilities are supplied to the new project from some other source, the cost and amount must be determined. If purchased from a second party, the cost will be determined by contract and can be estimated by discussions with the vendor. If utilities are transferred from an affiliated source, the cost must include a profit to the supplying entity. Some estimators use a lower return on utility plants than on a new hydrocarbon processing unit, since the utility can be used for some alternate plant if the new one shuts down for any reason. However, the preferred analysis allows a high enough utility transfer price to provide the same return on the utilities as the new unit being studied. This can require a trial and error approach, especially if the utilities are a significant part of the selling price of the product. 

In analogy to the demand side, procurement contracts are fixed by quantity and price with the objective to ensure a basis volume of raw materials. Spot procurement supports company s flexibility requirements and the company can decide the spot procurement quantity with certain flexibility around the offered quantity. Price levels for contracts and spot business differ and are volatile in each period. Typically, companies operate with few key strategic suppliers for a respective product or raw material. Therefore, price-quantity models like in sales planning are less applicable. More often is the case that specifically commodity-type raw materials are procured on many-to-many exchanges, which is out of the scope in our case as described in section 3.2.6. If products are supplied by internal business units, transfer prices are applied following the contract procurement principles. 

The caprolactam prices shown in Table 4 are for large contracts of molten material. Flaked material is sold in bags, either in small lots or for export, and costs ca 0.10/kg more than the molten product. Exports normally have risen during periods of recession in the United States, eg, 1970,1975, 1980, and 1990. 

The present cost of a 25 kW, 944 ft2 stand-alone prototype unit is about 150,000. This price is likely to drop as production volume rises. Stirling Energy Systems, Inc., is operating a six-dish test unit at Sandia National Laboratories and has contracts for full-size power plants. Their construction started in 2008 and will be completed in 2012. A 500 mW plant will be built at Victorville, California, in the Mojave Desert for Southern California Edison. This construction is estimated to take 3-4 years. The plant will consist of 20,000 dishes over a 4,500 acre area. Another 300 mW plant will also be built at Imperial Valley, Calexico, California, for San Diego Gas and Electric on an area of 2,000 acres. 

Uranium recovery was briefly described in the ninth edition. Since 1990, all uranium recovery contracts have expired in the United States and the recovery facilities moth-balled or scrapped. There is no indication the situation will change in the near future, because the reduced price of uranium no longer makes its recovery from phosphoric acid economical. 

---