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All three of these clauses give the government the right, at any time and without notice to the sureties, to make changes in the work within the general scope of the contract. The clause for fixed-price contracts specifies that changes may be made to the specifications (including drawings and designs), the method or manner of performance ...
According to the PMBOK (7th edition) by the Project Management Institute (PMI), Fixed Price Economic Price Adjustment Contract (FPEPA) is a "fixed-price contract, but with a special provision allowing for predefined final adjustments to the contract price due to changed conditions, such as inflation changes, or cost increases (or decrease) for special commodities".
A "price adjustment" is a change to the established price of the contract arrived at by mutual agreement between the Government and contractor. An "adjustment in estimated quantities" is a contract adjustment pursuant to the contract clause on variation in estimated quantities.
Contract TYPE (see FAR Part 16) (i.e., fixed price (FP), FP with economic price adjustment, cost-reimbursement, incentive, time and materials, IDIQ, letter contracts, agreements under FAR Subpart 16.7, etc.). Note in FAR 52.301 that a clause must be in both the contract and the solicitation but provisions are only in solicitations.
Under this clause, the contractor could claim a profit allowance for work it already had performed, but not for anticipated profits. However, the company argued that because the Army had failed to include this termination for convenience clause in the contract, the Army's cancellation of the project constituted a breach of contract. The ...
The owner's risk is reduced due to the price of the contract being fixed and variations are not as much like other contracts. [8] [9] There are fewer change orders. [8] [9] The bidding and contractor selection is less complicated. [8] [9] Obtaining construction loans are easier with this type of contract. [9] [8]
A fixed-price contract is a contract where the contract payment does not depend on the amount of resources or time expended by the contractor, as opposed to cost-plus contracts. Fixed-price contracts are often used for military and government contractors to put the risk on the side of the vendor and control costs.
A resolutive time clause stipulates the duration of the contract, after which it ceases. Although it comes into existence and is performed right away, it will, at a certain future point, be resolved and the obligation terminated. Lease contracts and fixed period contracts of employment are common examples.