...Contracts for Services A guide for employers and managers A-Z of Employing - published by EMA ADVICE In this guide to Contracts for Services: OVERVIEW INTRODUCTION DEFINITIONS Contract for service EMPLOYERS & MANUFACTURERS ASSOCIATION (NORTHERN) INC 159 Khyber Pass Road Grafton, Auckland New Zealand. Private Bag 92066 Auckland 1030. Contract of service MEANING OF EMPLOYEE TESTS Control Integration Fundamental or economic reality test Independence Intention APPLICATION OF LAW BEST PRACTICE CHART OF DIFFERENCES APPENDICES: IRD CHECKLISTS Appendix 1: Control test checklist Appendix 2: Integration test checklist AdviceLine For telephone advice and assistance, call or email the EMA AdviceLine and talk to one of our employer advisors: 09 367 0909 or 0800 800 362 AdviceLine@ema.co.nz Appendix 3: Independent test checklist Appendix 4: Intention test checklist Appendix 5: Economic reality test checklist Appendix 6: Employee Checklist 2 2 3 3 3 3 4 5 5 5 6 6 6 7 8 9 9 11 12 13 14 14 A-Z of Employing is available to EMA members only, via email, or online at www.emadvice.co.nz Contact AdviceLine to obtain your password. AdviceLine is open 8am – 8pm Monday to Friday (excluding public holidays) Contracts for Services OVERVIEW 1 2 3 A contract for service contrasts with a contract of service. An employee is a person under a contract of service and a contractor is a person who enters into a contract for service. The concern with the correct classification of a relationship...
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...What Is My Role in Managing the Contract? Introduction Introduction Approximate Length: 1 hour 45 minutes Welcome to the What Is My Role in Managing the Contract? lesson. Upon completion of the lesson you will be able to answer these questions: What Is the COR's Role in Contract Administration? Why Should the COR Talk with the KO? What Makes Up a Contract? What Else Might I Encounter When Dealing with a Contract? Print Version For a printer friendly version of this lesson, select the icon on the left. To print a single page, select the 'Print' button at the top of the screen. Page 1 of 41 Review the lesson learning objectives. Recognize the basic information (period of performance, Performance Work Statement (PWS), contract value) found in a contract to include the uniform contract format. Identify methods of tracking contract obligations using Accounting Classification Requirements Number (ACRNS) and Contract Line Item Numbers (CLINs) in a contract. Recognize the COR’s role in tracking the contract schedule. Analyze contract schedule compliance, to include all Statement of Work (SOW) requirements and Contract Deliverable Requirements List (CDRL) deliverables. What Is My Role in Managing the Contract? Introduction Know Your Contract Page 2 of 41 Animated Vignette Alternative Note: The animated vignette does not employ the use of audio. Please select the Next button when the animated vignette is complete. What Is My Role in Managing the Contract? What Is...
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..._____________________________________________________________ _____________________________________________________________ Email: _____________________________________________________________ Employer: _____________________________________________________________ Declaration I declare that no part of this assessment has been copied from another person’s work with the exception of where I have listed or referenced documents or work and that no part of this assessment has been written for me by another person. Signed: ____________________________________________________________ Date: ____________________________________________________________ If activities have been completed as part of a small group or in pairs, details of the learners involved should be provided below; This activity workbook has been completed by the following persons and we acknowledge that it was a fair team effort where everyone contributed equally to the work completed. We declare that no part of this assessment has been copied from another person’s work with the exception of where we have listed or referenced documents or work and that no part of this assessment has been written for us by another person. Learner 1: ____________________________________________________________ Signed: ____________________________________________________________ Learner 2: ____________________________________________________________ Signed: ____________________________________________________________ ...
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...Hiegel PM 595 A contract is defined as: "an agreement made between two or more parties which is enforceable by law to provide something in return for something else from a second party". I never thought I will have to understand the different types of contract that exist but, after getting married my husband and I decide to buy an old house since this one was situated where we wanted. We did not know that buying an old house will bring us so many problems. Finding a contractor that agrees to do and add as the project runs what we want, how we wanted and in a reasonable time frame were very difficult. Building a house is not just draw and buy the materials, building a house is more than that, decide what we want inside?, how we wanted?, the colors?, what we need to change?, what need an updated?, do we need more rooms?, less rooms? They were so many questions and doubts that we knew that we need a contract where we can change and plan as we see the results of the initial project. In the construction industry, it is not a question of whether or not to have a written contract: one of the real issues is how many contracts can or will be involved in the project. We did not want to be writing diverse contract for the project, for the different steps and changes we may have to do in the scope and plans. We integrated our search for different s contractor and companies, and all of them use different type of contract. Most of the contractor wanted to do a contract based on provide...
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...the products necessary for meeting the needs of the project scope. Procurement management involves planning, soliciting sources, choosing a source, administering the contract, and closing out the contract. Procurement management, as far as your PMP exam is considered, focuses on the practices from the buyer’s pointof-view, not the seller’s. The seller can be seen as a contractor, subcontractor, vendor, or supplier. When buying anything from a vendor, the buyer needs a contract. A contract becomes a key input to many of the processes within the project. The contract, above anything else, specifies the rules and agreements for the project. Here’s a neat twist: when the seller is completing its obligations to supply a product, PMI treats those obligations as a project. In other words, if ABC Electricians were wiring a building for your company, ABC Electricians would be the performing organization completing its own project. Your company becomes the customer of their project—and is, of course, a stakeholder in their project. In the scenarios described in this chapter, the seller will be outside of the performing organization. The buyer will be managing a project and procuring resources from a vendor. However, all of the details in this chapter can be applied to internal work orders, formal agreements, and contracts between organizational units within a single entity. Planning for Procurement Procurement planning is the process of identifying which part of the project should be...
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...ongoing project for the next couple of years. Which contract structure (fixed price, unit price, reimbursable) do you think that you would use to proceed with your project? Explain your choice. What are the four basic contract pricing options? What are five options of cost reimbursable contracts? In what situation a company is best to use a unit price contract? In what situation, a company is best to use cost-plus-percentage-fee contract? What are the differences among a fixed price contract, a time and materials contract, and a reimbursable contract in terms of how well defined a BPO contract needs to be relative to price, scope and schedule prior to the commencement of any work/services? Class, do you feel the length of the contract also has some influence on the contract type you choose? Why or why not? What are the challenges for an owner in tracking a reimbursable contract? When does a contract manager prefer a fixed fee contract over a reimbursable contract (or vice versa)? How many companies do you think go through outlining their business objectives, and then use these to guide the selection of a contract structure, rather than letting financial objectives and risk factors alone determine the decision? If your company decided to make you a manager for your division, but began outsourcing all the personnel that work beneath you, which contract type would you recommend they implement? What are the key contract issues? Pick one of them and elaborate on it. For...
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...com/proj-410/proj-410-week-2-dq-2 What are the differences among a fixed-price contract, a time-and-materials contract, and a reimbursable contract in terms of how well defined a contract needs to be relative to price, scope, and schedule prior to the commencement of any work? How much control over the project scope, price, and schedule should the contractor have under each contract type? How difficult is it to handle out-of-scope work with the 3 contract types (fixed price, time and materials, reimbursable) after an agreement has been executed? What do you see as the more common mistakes made by customers/clients or their procurement representatives as it relates to project planning and contract formulation? Now that you know the differences among a fixed price contract, a time and materials contract, and a reimbursable contract, let’s discuss some of the finer points to consider. Do you think a fixed price contract requires less management attention than a reimbursable contract? Why or why not? We typically hear of clients looking for the lowest price, and rarely does the term value come into the picture? Is it assumed that the value is there and is that a fair assumption most of the time? How do you differentiate a project plan from the project definition? To continue with the relevance of the project definition and project plan (schedule) to contracts: what components of the project definition and schedule have a role in the contract aspects? How many companies today do you feel take on...
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...are six elements to an enforceable contract. First of all, they must offer and acceptance, mutual agreement, consideration, competent parties, legality of purpose, and proper form. Contracts may be classified in many different ways, and it mainly depends on how they were formed and crafted. A contract may be either written and/or oral. It can be formal or simple as well (Liuzzo & Bonnice 2010). Bearing in mind the situation will decide how these six elements come into play with the particular contract. Consumers are to expect that when they hire someone to fulfill these contracts, this person will complete the task as fast as they can, and be detailed oriented. Any changes or mess-ups could cause money to be lost and thrown down the drain. The money fuels the contractor, and the buyer/ client is fueled by accuracy and flawlessness of the contract. The client puts a lot of trust in the contractor and expects them to be self-driven and complete what is necessary. Doing complete and accurate work in a timely manner is expected on all levels, especially as more money is put on the table. There are many reasons why a contract would be implemented and created. Revisions are common among parties to create a more custom contract. (Luizzo & Bonnice 2010). Substantial performance occurs when a party to the contract, in good faith, executes all the promised terms and conditions of the contract with the exception of minor details that do not materially affect the intent of...
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...Contracts and Procurement Management Notes: E-PROCUREMENT E-Procurement is the business to business (B2B) purchasing of goods and services through the Internet. These days, E-procurement is an invaluable tool for streamlining the procurement process. There are several varieties of e-Procurement, each of which can offers benefits to manufacturing enterprises in ensuring both that materials are delivered in time to meet production schedules and that they are at the best price to maximize profit margins. The state of Kentucky uses two methods to manage their contracts. These processes are: the competitive sealed bidding where by the bid is opened publicly at the time and place of solicitation and the competitive negotiation by RFP of which they are not opened publicly. E-Procurement.gov. helps the government and the citizens realize the vision of growth via profitable B2B e-commerce. The proven platform used by the largest companies in India and the world, it enables trade between companies of different sizes, platforms and locations.To this end,eProcurement.gov.in will provide services like eProcurement, eTendering, eSelling and eAuctions. E-procurement Auction Services offers government departments easy-to-use, web-based solutions for conducting dynamic exchanges in an on-line environment. It provides real-time bidding solutions for buyers and sellers as control, and simplicity to corporate procurement and liquidation processes. The state of Kentucky uses two methods to...
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...Contract Law Employment Contracts Entry Level vs. Executive Entry Level Contracts The contract that is being introduced is for an entry-level position at Taboo Resort Golf and Spa. The contract itself is very generic and can apply to any entry-level position at the resort. Although the contract does not speak to specific position, it was presented to a future front desk agent. The contract is not lengthy and is divided into sections. This method assures that the future employee is reading the full contract and is not missing any important or valuable information. The following will deconstruct the contract in order to show how the resort showcases risk management. Hours, Wages &Gratuities The contract first outlines the duration of your work period. In this case a six-month period was discussed and agreed to. The front desk agent was considered as a full time position therefore it was expected to have forty hours of work a week. However, the contract notes in bold, “Please note that hours are based on business, we cannot always guarantee 40 hours per week.” This is a great example of how Taboo Resort saves them from explaining to employees why they may not be getting many hours. Though they are considered full time, it states in the contract that they are not promised these hours due to the nature of the industry. However is you are keen on working forty or more hours there is always a way to negotiate. At a resort there are many departments that need help...
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...Contract Versus Direct Employee We have all be there, sitting in our offices, staring at the walls wondering is this it? Am I going to be stuck in this same position until I retire? Are any other opportunities going to come my way? Then before you know it opportunity comes across your desk that would allow you to have more flexibility, freedom and a chance to earn more money. Do you do it? The only catch is, you give up your position as a permanent employee and become a contractor. When someone chooses to become a contractor it allows them to try other jobs, see what is out there and get a chance to get experiences that they wouldn’t normally get if they were stuck with one role for the rest of their professional life. Being a contractor is more advantageous than working direct by allowing flexibility and pay. One major reason contract work is very alluring is the pay and the fact they are paid double what an average employee will make in an hour. They are able to negotiate more freely with an agency on how much they wish to be paid versus someone in a more direct position that is able to negotiate, but if the offer returned doesn’t exceed their expectations, then there is the chance they can decide to go with someone else who will take lower pay. The bottom line is you can usually make a lot more money as a W-2 or 1099 contractor/consultant than a salaried position. In a contract role, if a company doesn’t match what you are asking for there is more wiggle room. The agency...
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...Introduction This paper is going to cover the different types of contracts and cover performance-based acquisition. Discuss which contract that would be warranted on vehicle purchase. Also, evaluate the pros and cons of sealed bidding, and negotiated contracts. Cover, which one would be best purchasing of vehicles in this case. Furthermore, we will cover the responsibilities of the contracting officer during the proposal evaluation. Assess the requirements for performance-based acquisitions and last create requirements for the vehicle purchase that could be included in a performance-based contract with rationale. Examine the types of contacts and performance-based acquisition Types of contracts that can be used are fixed-price, cost-reimbursement,...
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...since its inception. This project is in the execution phase, with the refurbishing and installation of the infrastructure currently being done in concert with each other. All of the new office equipment is on order and is scheduled for delivery on the day after the refurbishment and infrastructure work are scheduled for completion. The overall work progress is about three quarters finished. Senior management is pleased with the progress of the project so far. There are four vendors working with you on the project. Bear’s Construction Company is handling all the refurbishment. This work includes all structural work, drywall, and electrical work in the building. Anne’s Interior Design is doing the carpeting, painting, and cubicle work. Roxy’s IT Services is installing all IT components, including servers, IT cabling, and a wireless network. Sheba’s Office Equipment is providing all desks, computers, and phones. All contracts associated with this project are fixed price contracts. Since taking over for John, you have had a number of contractual issues arise associated with this project. You have delayed making any decisions about these issues, hoping they would work themselves out. Today, a third contractual issue was brought to your attention. Realizing you can no longer postpone action on these issues, you call a meeting of your project team. You project team is made up of three...
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...summary, introduction, description, application, recommendation and principles. The aim of this paper is analyze the employment contract. The steps of the analysis are reading the employment contract carefully, deconstructing the clauses of the contract line by line, pulling out different legal principles, tell the stories or create the scenario that how they fire you, give my recommendations and what I learned about this contract. The reason this employment contract created is because both the employer and the employee need to confirm their obligations, liabilities, and rights. The relationship between the company and the consultant should based on a valid employment contract. In the recommendation part, I try to find out the best way that the consultant can do under this agreement, and if the problem is arising, how can we solve it. The pulling out of legal principles found that many common law ideas were applied in the contract. The use of common law specifies the provisions that about what the consultant can do and what they cannot do. The contract is written in English, and the words is used in the contract are no ambiguity. I explain the clauses line by line use my own words. The clause covers many areas, and it is detailed. The scenario part covers stories that I try to explain the application of the common law based on this contract. I use some certain example that will occur in our real life try to solve problem through the provisions in this agreement...
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...Discuss the relevance of the psychological contract in a global context Introduction Psychological contracts are based on specific promises made by both parties and on generally accepted promises that are based on the general obligations of employers and employees. Even if an employer has not made specific promises in that regard, every employee will appreciate clarity, fairness and good communication. Every employer will appreciate employees dealing properly with confidential information and doing good work. In addition to general obligations, the psychological contract is further augmented with written agreements, such as employment contracts (Huiskamp & Schalk, 2002). It is the psychological contract that effectively tells employees what they can expect from their job and what they are required to do in order to meet their side of the bargain. A good psychological contract provides a sense of identity that offers recognition for employee contribution and conveys a feeling of security. A breach of the terms of the psychological contract can provoke a loss of trust and a sense of betrayal. The psychological contract is the glue which holds together the employment relationship (Pilbeam, S et. al, 1998). As such, existing empirical research demonstrates that contract breach is related to lower employer trust (Robinson, 1996), job satisfaction (Robinson and Rousseau, 1994), organisational commitment (Coyle-Shapiro and Kessler, 2000), intentions to remain (Turnley and Feldman...
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