Para 4.2 — NONCONSULT_MANUAL

2. Each type of contract is described briefly in subsequent paras, and criteria are suggested for their adoption, along with risks and mitigation measures. Normally used types of contracts for Non-consultancy Services are:

4.2. Types of Contracts: 1. There are various alternative basis for linking payments to the performance of a quantum of services (called types of contracts) – each having different risks and mitigation measures. Bids are called and financial evaluation is based on the type of contract. The choice of the type of contract should be based on Value-for-Money (VfM) with due regard to the nature of the requirement. BOQ of the financial bid is designed specifically for each type of contract. Adoption of an inappropriate type of contract could lead to a situation of lack of competition, contractual disputes, and non-performance/ failure of the contract.

a) Lump sum (Firm Fixed Price) contract; b) Time based contracts; c) Percentage (Success Fee) contract; Chapter 4: Bidding Design for Non-Consultancy Services d) Indefinite delivery contract.