The New Owner Of This 3 Bedrooms Flat With A Front View On Bondi Beach
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To confirm you are the new owner of this 3 bedrooms flat with a front view on Bondi beach, you have signed a contract with the seller, generally through an agency and a solicitor. A contract is a written or spoken agreement between two or more parties for the doing or not doing something specified. An agreement can be enforceable by law.
Types of contract
On the business field, a contract is usually between someone who provide a service to a hirer for money. You are promising to do a job for the hirer and the hirer is promising to pay you for it. (government) There is different type of contracts with two major groups: fixed-price and cost-plus contract.
When you can forecast how much a service or a good are going to cost you, you would…show more content… (Fixed Price with Economic Price Adjustment Contract, 2016)
– Fixed price incentive with successive targets: it is an incentive contract that operates in the same way as an FPIF contract except that one or more revisions in the target cost and target profit may be made during performance. (Fixed Price Incentive (Successive Targets) FPI(S), n.d.)
- Fixed price for services, material, and labor at cost: “Direct materials” means those materials that enter directly into the end product, or that are used or consumed directly in connection with the furnishing of the end product or service. (Types of Government Contracts, 2012)
However, whether it is difficult or impossible to evaluate the cost of a service or item, contractors will usually agree to a cost-reimbursement contract, in which the stakeholders assume some level of risk for the final costs. (government)
– Cost-plus percentage fee (CPPF): under cost-plus-fee contract, a contractor is paid for all allowable incurred costs plus a fee. The fee can be a fixed amount or a percentage of the costs invoiced. (Kurt Rossetti, 2008) This contract is less risky for a contractor.
– Cost-plus fixed fee (CPFF): that contract provides a payment of approved costs plus a fixed fee. (Types of Government Contracts, 2012).