Contractor determines that a contract will result in an overall loss

Related BrainMass Solutions

• Contracting Scenario

  Sixth, there is an overall risk that the contractor may not be able to complete the tasks in an error free manner. 2. How do these risks effect competition, pricing, schedule, and performance?

• Responsibilities of Contracting Officer

  The Contractor is not compensated for additional work or resources which get consumed as a result of correcting a noncompliance.

• Some questions on normal distribution

  The contract will be profitable if revenue exceeds total cost. What is the probability that the contract will be profitable for the contractor? b. What is the probability that the project will result in a loss for the contractor? c.

• Completion of final work at the end of a project

  Going over-budget, however, reduces the amount of profit realized from the contract and may even result in the contract being a net financial loss - this further complicates getting fixed price contractors to complete their contract work.

• Cost and Risk

  Answer A fixed price contract is a contract which is organized in such a way that, when the contractor finishes the agreed-upon work, it will only receive the pre-arranged compensation, regardless of what their costs were.

• Concepts in Contracting

  This type of contract is seen as an inducement for maximum efficiency from the contractor. The solution is a short narrative that explains concepts in contracting including Fixed Price Project, Firm Fixed Price, and Fixed Price Incentive.

• Long-Term Contract with Overall Loss

  242195 Long-Term Contract with Overall Loss P18-7 (Long-Term Contract with an Overall Loss) On July 1, 2007, Kyung-wook Construction Company Inc. contracted to build an office building for Mingxia Corp. for a total contract price of $1,950,000.

• Abe, Beth and Cindy want to form Marketing Specialties, LLC (limited liability company). What issues should they address in their operating agreement? If they fail to include some important operating details, what determines these details?

  Second, even though there is no explicit contract between Smith & Jones and E- Business by implication, they will be deemed to be in contract. What is an implied contract? An implied contract can either be implied in fact or implied in law.

• Project Management and Government Acquisition

  While a title to property with cost reimbursement deals reflect the costs the contractor agreed on, there will be a reimbursement allotment for any depreciation or amortization with regards to the ownership stated in the terms.