Types of contracts

The choice of contract type will depend upon the type of work, and the level of control which the oil company wishes to maintain. There is a current trend for the oil company to consider the contractor as a partner in the project (partnering arrangements), and to work closely with the contractor at all stages of the project development. The objective of this closer involvement of the contractor is to provide a common incentive for the contractor and the oil company to improve quality, efficiency, safety, and most importantly to reduce cost. This type of contract usually contains a significant element of sharing risk and reward of the project. 

The importance of contract fonn needs to be appreciated whether a project is predominantly in-housc with perhaps relatively small involvement of subcontractors, or the entire work is to be entrusted to a contractor. Responsibility for commissioning needs to be dearly defined to avoid ambiguities at a later stage. 

A wide range of types of contract exist covering all likely combinations from Turnkey to full reimbursable contracts. At the enquiry or bid stage of the project the definitions of responsibility must be carefiilly considered together with the general Conditions of Contract, 

There are a number of model Conditions of Contract for process plants, including those published by the Institution of Chemical Engineers for lump sum, reimbursable contracts and subcontracts (see References 1,2 and 3). They provide well-defined guidelines cwiceming related responsibilities, terminology 

Even if a recognized model form of Conditions of Contract is not used, it is nonetheless important that the contract defines the split of work and responsibility between client and contractor. This split of work will be significantly different depending upon whether the process technology is owned (or licensed) by the client or contractor. Table 2.1 contains extracts from a procedure developed by one UK process plant contractor to define such responsibilities. At the same time it identifies activities which interface between construction and commissioning. Procedures of this type may need to be adapted to suit the type and complexity of a particulai plant. 

Whatever form of Conditions of Contract is used, it is important that the requirements for completion of respective phases of the contract are clearly defined. Such milestones in the progress of site activities are usually fonnalized by appropriate certification. To these many may be linked to stage-payments, or transfer of ownership with its significant effect on insurance liabilities. 

UNDER THE AGENCY CONTRACT, THE OWNER ASSUMES THE RESPONSIBILITY AND LIABILITY FOR THE ACTIONS OF THE CONTRACTOR. IT SHOULD BE AVOIDED. 

Contracts for engineering and construction of a chemical facility can fall under any, or a combination, of the following variations. 

A WELL-THOUGHT-OUT EXECUTION PLAN MUST ALLOW FOR COMPETITIVE CONTRACTING AND SUBCONTRACTING. 

All of these types of contracts are normally used in industry and each one offers advantages and disadvantages to both owners and contractors. 

Two factors must be weighed against each other when choosing the type of contract  

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This type of contract requires the operator to pay a fixed amount to the contractor upon completion of the well, while the contractor furnishes all the material and labour and handles the drilling operations independently. The difficulty with this approach Is to ensure that a quality well Is delivered to the company since the drilling contractor will want to drill as quickly and cheaply as possible. The contractor therefore should guarantee an agreed measurable quality standard for each well. The guarantee should specify remedial actions which will be implemented should a substandard well be delivered. 

As the name implies the company basically rents the rig and crew on a per day basis. Usually the oil company also manages the drilling operation and has full control over the drilling process. This type of contract actually encourages the contractor to spend as much time as acceptable on location . With increased cost consciousness, day rate contracts have become less favoured by most oil companies. 

Contracts made between the oil company and supply or service companies are a factor which affects the cost and efficiency of development and production. This the reason why oil companies are revising the types of contract which they agree. Types of contract commonly used in the oil industry are summarised in Section 11.0. 

General - This is a description of the type of contract and the relationship with other parties, i.e. whether the contract is to be nominated, main or domestic fixed price of fluctuating. 

That workmanship is up to the standard expected in this type of contract. The Codes of Practice, lEE regulations and other bodies related to standards should be used as a measure of standard. It was ruled in the case of Cotton v. Wallis (1955) that a lower standard of work could be accepted in a known cheap job, as long as the work is not rank bad . 

Select the type of contract most appropriate for the work. 

Various types of contract are offered and it is recommended that the original suppliers are approached during the commissioning period (or before) for their suggestions. In particular, there may be friction if a rival firm undertakes maintenance while the plant is under guarantee and it is usual to let the first year s contract to the installer. 

Provider networks are groups of providers under some type of contract with the insurer. Patients choice of provider is restricted, and they may receive only partial coverage or no coverage for health care obtained from providers who are not in the network. Having a contract with a provider network allows the... 

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... 

Regarding Chemical Leasing the situation is quite different It is not mentioned at all in the Austrian General Civil Code, it is an atypical contract which is yet to be developed by lawyers or legal divisions of enterprises planning to do business according to the Chemical Leasing model. As mentioned above it is important in this context to find out which of the established types of contract is most similar to the new contractual relationship. 

While the acronym STO-3G is designed to be informative about the contraction scheme, it is appropriate to mention an older and more general notation that appears in much of the earlier literature, although it has mostly fallen out of use today. In that notation, the STO-3G H basis set would be denoted (3s)/[Is]. The material in parentheses indicates the number and type of primitive functions employed, and the material in brackets indicates the number and type of contracted functions. If first-row atoms are specified too, the notation for STO-3G would be (6s3p/3s)/[2slp/ls]. Thus, for instance, lithium would require 3 each (since it is STO-3G) of Is primitives, 2s primitives, and 2p primitives, so the total primitives are 6s3p, and the contraction schemes creates a single Is, 2s, and 2p set, so the contracted functions are... 

The primary issue under debate—an issue of great importance at UC Berkeley—is maximum freedom for individual investigators. Everything on campus—however irrational it may seem—is rational when observed under that criterion. And from the department s view, freedom for investigators was essenhally what the contract delivered. The contract provided more freedom in allocation of research support than almost any type of contract or grant, and the funds were to be disbursed by their own department. 

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

There are many different types of contracts that will be discussed briefly in the succeeding paragraphs. However, there are two specific alternatives, applicable to all types, that merit separate mention. 

The Agency Agreement. In this type of contract, the contractor is made the agent of the Owner and carries all contract activities in the name of the Owner. 

The Independent Contractor Agreement. Under this type of contract, the contractor is engaged to act as an independent entity, fully responsible for all actions taken during the execution of the work until acceptance by the Owner. 

Although the evaluation and selection process is practically the same for all contracts the EPC contract is more complex and requires more work and attention to details, so the essentials of this guideline can be used for all types of contracts. 

In all species, the small intestine is the main site for simultaneous hydrolysis of fats, proteins, and carbohydrates by selective enzymes and absorption of the resulting nutrients. It consists of three sequential sections duodenum, jejunum and ileum, each with villi and mucosal linings. During the process, the pH of the digesta is raised from that of the stomach, to near neutrality over the length of the small intestine. In swine, the pH profile is as follows stomach, 2.4 proximal duodenum, 6.1 distal duodenum, 6.8 proximal jejunum, 7.4 distal jejunum, 7.4 and ileum, 7.5. In sheep, the profile is abomasum, 2.0 proximal duodenum, 2.5 distal duodenum, 3.5 proximal jejunum, 3.6 distal jejunum, 4.7 and ileum, 8.0 (48). Several types of contractive and peristaltic actions mix and move the digesta down the intestine. The lower pH at the proximal duodenum of ruminants plays a critical part in fatty acid reabsorption. Hydrolysis of triacylglycerols by pancreatic lipase... 

The last type is comprised of academic institutions that provide assistance with custom synthesis, dosage form development, pilot-scale production, and production of clinical supplies in order to obtain additional income to support their academic programs. They have no interest in, nor are they equipped for, commercial production. Companies seeking outsourcing should be aware that students and faculty could form part or all of the staff of their operations this may be a disadvantage when considering using this type of contract manufacturer. 

The pharmaceutical physician will be very familiar with certain types of contracts, depending on his/her role within the company. Examples include agreements with contract research organisations, contracts for the sale of the finished pharmaceutical product and licensing or distribution agreements. 

An agreement on the overall budget for the project, although clearly an important milestone, does not actually form the whole of basis of the contractual relationship between the sponsor and the CRO. The two parties must also agree on the type of contract that best meets the needs of both parties. 

Type of contract Characteristics Sponsor perspective CRO perspective... 

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