Fixed fee

Figure 1-38 is reasonably typical of fixed-fee costs as charged by contract engineering organizations. The top curve representing the total engineering and related costs... 

A good example is the relationship between GM at their truck and bus plant in Janesville Wisconsin, and one of their Tier 1 suppliers BetzDearborn. The agreement covers water treatment chemicals, paint, lubricants, commodity chemicals and solvents. For a fixed fee per vehicle manufactured, plus some additional service fees, BetzDearborn provides the following services ... 

Sells a number of coated square meters against fixed fee ("Unit Pricing") to ... 

Even before the optimum plant size was determined, a contractor had been selected and process design work was in progress. The contractor was selected on the basis of competitive cost plus fixed-fee bids. The contract was later converted to a turn-key type, based on the competitive-bid fixed-fee percentage and a definitive cost estimate for completion of the job. This saved about 2 months in over-all job completion time. Through duplication of equipment purchases and construction drawings, it was possible to reduce over-all completion time for three subsequent plants by as much as 8 months from the 17 months required for the first module (Fig. 2). About 29 months were required from Geld discovery to startup of the last Exxon treating facility. 

Table 13.1 presents the evolution of economic indices in the period 1960-2000. The technology of large reactors was developed in the period 1960-1980, while very small batches and energy saving occurred after 1980. With respect to the cost structure one may estimate that the VCM contribution is about 80%, while the plant fixed fees are under 10%. The conclusion is that the suspension PVC process may be considered as a mature and advanced technology. 

Adsorption Site fee Hollow fee Hollow + On-Top fee Hollow + On-Top (On-Top Fixed) fee Hollow + On-Top + hep Hollow... 

Reimbursable contracts, also known as time and materials (T M) or cost-plus, are the least desirable for construction work. However, they could be the only alternative for engineering work when the scope has not been fully defined and/or the Owner wants to exercise full control in order to protect proprietary information. They should be tied to a fixed fee to discourage the contractor from incurring unnecessary expenses. 

The guaranteed maximum price (GMP) contract is essentially a reimbursable fixed-fee contract with a price cap that is usually established without the benefit of complete engineering. The Owner approves all expenditures and major decisions and agrees to share the underrun with the contractor based on a mutually agreed upon formula. 

The most cost-effective way to execute the construction work is through competitive lump sum contracts. Engineering, on the other hand, should be performed on a fixed-fee reimbursable basis to ascertain that the level of engineering effort and details is sufficient to insure a sound and safe design as well as minimal field questions and extras. 

There are 4 reimbursement categories 0, 50, 70 and 90 percent as well as fixed-fee (reference price) reimbursement for generics. Moreover, a Minister of Health Decree specifies special sicknesses/symptoms when certain medicines, listed in the Decree by their brand ncimes, may be prescribed by special physicians at 90 and 100 percent reimbursement. This Decree was issued in 1995 and its lists are modified every year. 

A HMO is a type of MCO that offers comprehensive healthcare to voluntarily enrolled members, who prepay a fixed amount of money in exchange for access to a clearly defined package of health plan benefits. Generally, HMOs receive a fixed fee from members, regardless of whether... 

A health maintenance organization (HMO) is a type of MCO that offers comprehensive healthcare to voluntarily enrolled members, who pre-pay a fixed amount of money in exchange for access to a clearly defined package of health plan benefits. Generally, HMOs receive a fixed fee from members, regardless of whether healthcare services are utilized or not, i.e. they are prepaid on a capitated basis. A primary distinguishing characteristic of HMOs is that, upon enrollment, members are required to select a primary care physician (PCP), who not only delivers comprehensive care, but also serves as the gatekeeper to specialty services, such... 

If a contractor is engaged to handle waste in the plant, the handling equipment may be owned by the contractor, who may work on a fixed-fee basis either by tonnage or hours expended. While this approach may reduce equipment investment, the contractor should indemnify against liabilities for contractor personnel and ensure that the company is compensated for damage to equipment or interruptions to production caused by the contractor. 

Stock lending or securities lending is defined as a temporary transfer of securities in exchange for collateral. It is not a repo in the normal sense there is no sale or repurchase of the securities. The temporary use of the desired asset—the stock that is being borrowed—is reflected in a fixed fee payable by the party temporarily taking the desired asset. In a stock loan, the lender does not monitor interest rates during the term of the trade, but... 

The most common credit derivative, and possibly the simplest, is the credit default swap—also known as the credit or default swap. As diagrammed in FIGURE 10.4, it is a bilateral contract in which a protection seller, or guarantor, in return for a periodic fixed fee or a onetime premium agrees to pay the beneficiary counterparty in case any of a list of specified credit events occurs. The fee is usually quoted as a percentage of the nominal value of the reference asset or basket of assets. The swap term does not have to... 

Finance PLC. The CDS premium is 575 basis points, and if this traded in the U.S. market, there is now a points upfront fixed fee to be paid on inception. This is shown on the screen as 2.885757%. Note also that the pricing model selected has been changed from the hitherto-standard JPMorgan model to the ISDA standard upfront model. Note that in the field SNAC the user has selected Y for yes, indicating this contract is being traded in the U.S. market and not in Europe. 

The cost of searching should not be neglected here Very often it is said that online searching is expensive, but mind that subscription fees of printed services and the maintenance of libraries are expensive and are calculated in the budget as fixed costs and that the hours passed at searching in printed services should also be taken into account as costs. Online searches cannot be calculated in advance, they depend on the databases use and occur monthly as invoices. Fixed fees for online searches are low and variable, volume-related costs are reduceable through optimized searching and the employment of information professionals. 

The proposed dispensing fees were revised upwards over time as pharmacists complained that their business would be imsustainable (Table 11.1). The lowest tier has stayed below RlOO (US 8.50) and the fixed fee was reduced, but the dispensing fee has been revised upwards with the adjustment of the percentage of the total medicine price. In the top tier of products above R799.85 (US 67.80), the fee has also been adjusted upwards through a revision of both the fixed component and the percentage of the medicine price... 

Fixed Fee Another method is to share take-back and recycling fees on a fixed fee per unit basis. But, because as already noted, actual collection and... 

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