Time is an incredibly critical contract factor.
It is advisable to only designate one team in a single contract with time constraints. One team is more organized, so productivity is available. Time allows you to plan ways to collaborate. The dedication should be considered whether contracts should be signed and procedures performed during contract execution. In the absence of time limits, contracts need to be limited to the evaluation process. The time aspect must allow the advisor to conduct similar projects with his skill and experience. The tender process would simply be recommended, which provides advantages such as the greatest benefit. It is important to clearly state the stipulated time period when the invoices are accepted.
Payment schedule
Payment schedule is subject to agreement; this is a binding to be followed by both parties. It is important to select a separate technical team. This team is selected in separate contract and the areas. The payment schedule should not allow approval of invoices by third party on behalf of the procuring authority. Payment schedules should be designed in such a manner that late payments attract a fee at certain intervals. Similarly, insufficient payments also incur a fee. For non delivered payments, the lender needs to contact agents of debt collection.
Invoicing process
Contracts should incorporate varied features of invoicing process. It should able to track and generate direct cost invoices. Similarly, the process tracks and generates indirect costs and fees. While generating invoices, one needs to create rate based contract lines (Mark, 2017). It is important to clearly define rates and associate the rates in contract lines. During processing of the cost of transactions, the system should use specific relationships in determining pricing of the transactions. A billing plan should be put in place to select the billing rates. These invoices are received within the time period outlined in the agreements. In contracts, several invoices can be received at a time.
Substantiating documents
Substantiating documents is required to meet agreements of the contract. While substantiating the documents, they should be provided. Examples of such include invoices and itemized receipts. There details to be included in documentation. Some of these details include dates, services offered and the purpose of the document. Document substantiation should be maintained by specific department of the organization. Additionally, it should be made easy to inspect by specific authority within the organization.
Holdbacks
Contract holdback is a legal requirement that demands the engaged contractor withholding a certain percentage of percentage over a given time period. It is the 10% of the value that is hold back from the contractor after job completion. The serve to protect the involved parties from getting ripped off for the work done. One the general contractor is paid; we have no way of knowing whether he has paid the trades. Holding back the money ensures that lien is cleared with money from the original contract. Upon agreeing with the contractor that the job has been done, the involved parties sign certificate of substantial completion. Holding back the final payment is done until time limit passes, roughly 45 days (Mike, 2008).
Interest charges
In a contract, the lender charges the borrowers for use of money. Interest charges should be calculated through applying the rates which is normally expressed as percentage. The rates are charged according to amount borrowed by the lender.
References
Mark Monloux. (2017). Contracts and Payments: You Options When You Dont Have a Signed Contract. Retrieved on 23 Sep, 2017 from https:\/\/graphicartistsguild.org\/tools_resources\/contracts-and-payments
Mike Holmes. (2008). How a holdback protects you. Retrieved on 23 Sep, 2017 from https:\/\/beta.theglobemail.com\/life\/home-and-garden\/how-a-holdback-clause-protects-you\/article571874\/?ref=https:\/\/www.theglobeandmail.com&service=mob
