Purchasing and Project contract management and the 3 main contract types: fixed price, time and materials, and cost based contracts. This is an important knowledge in Project Procurement, Supply Chain, and Purchasing Management. In this video, you learn:
Why and when do companies need contracts in purchasing management?
What are the main contract types used by companies?
What are the ADVANTAGES and risks of each contract type?
Would you like to understand contract management in corporations? If yes, keep watching.
Fixed price is a contract in which the price of the product or service is fixed during the contract duration. In these contracts, buyer and seller should know very well the specifications and, therefore, the costs can be estimated with accuracy.
In a cost-based contract, the buyer agrees to reimburse the supplier for the expenses incurred plus a dollar amount of profit, usually a percentage of the contract’s full price. To protect against cost overruns, some companies define the maximum cost reimbursement the supplier cannot exceed.
In Time & Materials (T&M) contract, cost unit rates are predetermined, but the man-hours and material quantity u can vary. Therefore, the total cost is not fixed while unit cost are fixed. It is a kind of hybrid contract. It has a fixed unit cost as the fixed price contracts, but the amount of material used and worked hours o may vary and will be paid accordingly.
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Topics covered in this video:
rfp basics, request for proposal 101, request for proposal outline, request for proposal template, request for proposal sections, request for proposal training, rfp for beginners, rfp purchasing management, rfp procurement management, purchasing process rfp, vendor selection rfp, supplier selection rfp, purchasing proposal, rfp purchasing management
My mission is to provide practical courses in business analysis for effective professionals. The objective is to keep the focus on the essential needs of professionals that work within short due dates and under pressure.
We provide a hands-on learning process. During the courses, my students have the opportunity of developing skills such as problem-solving, critical thinking, and quali-quantitative analysis in practical business applications. My sessions started with the basics, then practice, implementation in a supporting software, and at the end, recommendations for a professional presentation. We cover the complete cycle, from the analysis to the business presentation.
My background includes D.Sc. in Industrial Engineering, and MBA, and 20+ years of hands-on experience in service and manufacturing industry. My teaching differentials represent a combined approach with a deep understanding of Business Management models, real case assessments, and personal testimony from my multifaceted experience. My extensive hands-on business experience (20+ years) along with proper teaching methods has been contributing to my students’ success since my first teaching assignment 15 years ago.