Common use of Time-Based Contract Clause in Contracts

Time-Based Contract. This type of contract is appropriate when it is difficult to define the scope and the length of services, either because the services are related to activities by others for which the completion period may vary, or because the input of the consultant or contractor required to attain the objectives of the assignment is difficult to assess. This type of contract is widely used for complex studies, supervision of construction activities, advisory services, and most training assignments. Payments are based on agreed hourly, daily, weekly, or monthly rates for staff (who are normally named in the contract) and on reimbursable items using actual expenses and / or agreed unit prices. The rates for staff include salary, social costs, overheads, fees and, where appropriate, special allowances. This type of contract should include a maximum amount of total payments to be made to the consultants. This ceiling amount may include a contingency allowance for unforeseen work and duration and provision for price adjustments, where appropriate. Time-based contracts need to be closely monitored and administered to ensure that the assignment is progressing satisfactorily, and payments claimed by the consultants are valid and in terms of the contract. Guidelines on fees for Consultants issued by the Department of Public Service and Administration, as well as any other accredited and recognized associations or bodies (e.g. AG, ECSA, Law Society, SAICA etcetera.) should be used as a basis to establish whether the fees proposed are reasonable and market related.