Download PART II COMMERCIAL TERMS Firm Fixed Price 1.0 CONTRACT

PART II
COMMERCIAL TERMS
Firm Fixed Price
1.0
CONTRACT RELEASE COST AND FEE
1.1
Full compensation to Contractor for full and complete performance by Contractor
of all the Work, compliance with all terms and conditions of this Contract, and for
Contractor’s payment of all obligations incurred in, or applicable to, performance
of the Work shall be the firm fixed price for each of the work efforts below:
Firm Fixed Price
insert proposed price in words
insert proposed price in numbers
1.2
Performance Bond (100% of Bid Price)
$xxx
Payment Bond (100% of Bid Price)
$xxx
Bond Total
$xxx
Grand Total including bonding
$xxx
Adjustment Rate
The cost of the payment and performance bonds set forth in 1.1 above shall be
adjusted at the rates set forth below for WRPS authorized increases to, and
decreases from, the Firm Fixed Price.
2.0
a.
Firm Performance Bond Rate: $xx per one thousand dollars.
b.
Firm Payment Bond Rate: $xx per one thousand dollars.
PRICING BASIS
The Contract Release Cost set forth herein is on a Lump Sum, Firm Fixed Price basis for
the duration of the Work and includes all Contractor’s costs, expenses, and overhead for
complete performance of the Work.
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3.0
PRICING FOR CHANGES
Adjustments to the Contract Price for any change in the Scope of Work shall be in
accordance with the requirements of General Provisions, Article 3.1 Changes and the
following rates on profit.
Company may request, and Contractor shall provide, proposal for Scope of Work
changes (additions and deletions) which are priced, at Company’s option, by one or a
combination of the following methods:
a. Rates used in this Contract in Rate Schedules A and B
b. Negotiated Firm Fixed Priced based upon a mutually agreed Scope of Work.
c. Negotiated fixed Rates not established in the Contract
d. Negotiated Unit Prices not established in the Contract.
Applicable to adjustments in Contract Price: Variable overhead and profit mark-up
allowances shall be determined by application of the following:
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For parties performing the Work, allowable percentages on changes will not
exceed the following: 15 percent overhead and 10 percent profit on total direct
costs up to $25,000.00; 10 percent overhead and 10 percent profit on total costs
over $25,000.00 up to $100,000.00; 7 ½ percent overhead and 5 percent profit on
total costs over $100,000.00.
The Primary Contractor’s (not performing the Work) profit on work performed by
lower tier subcontractors will be based on the total of all net increase for all
subcontractors performing work of the change in the tier immediately below and
subordinate to the Primary Contractor fee on changes will not exceed the
following: 10 percent profit on total increases up to $25,000.00; 7 ½ percent profit
on total increases over $25,000.00; 5 percent profit on total costs over
$100,000.00.
No more than three mark-ups, one overhead and two profit, none of which exceed
the percentages shown above, will be allowed regardless of the number of tiers of
subcontractors or the subcontract instrument (i.e., Purchase order, contract, etc.).
The contractor’ or subcontractor’s profit shall be only applied to the net increase
in the change price after deductions have been taken
A reasonable credit and overhead and profit shall be included as part of the
downward adjustments for a deductive change.
Overhead and contractor’s or subcontractor’s profit percentage shall be
considered to include the following; insurance cost, small tools and consumables,
incidental job burdens, and general home office expenses commonly known as
G&A and no separate allowances will be made thereof.
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4.0
TAXES
4.1
Contractor shall pay when due, and the compensation set forth in the terms and
conditions found in section III and IV of this Contract and shall be inclusive of,
all taxes, duties, fees and other assessments of whatever nature imposed by
governmental authorities and applicable to the performance of the Work and this
Contract.
4.2
Company is required to obtain correct taxpayer identification numbers from all
non-corporate payees who receive payment for services, rents, royalties or interest
that would be subject to IRS Form 1099 reporting. Twenty percent back-up tax
withholding will be imposed on all Form 1099 reportable payments made to
Contractor if Contractor fails to provide a correct taxpayer identification number.
License No.
, Type: Construction General Contractor,
State: Washington
Taxpayer I.D. No. 91-
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