Two main considerations determine the type of contract to be used for the various consultant assignments; the nature and degree of the definition of the assignment, the distribution of risks between the Client and Consultant and the level of contract supervision the client will be able to provide. The following are the various types of contracts that can be adopted for appropriate assignments, namely:- (I) Lump Sum (Firm Fixed Price) contracts :- These are used mainly for assignments in which the content and length of services and the required output of the Consultant are clearly defined and for these reasons the Consultant can generally control the scope of work and duration of services. In these contracts payments are linked to clearly specified outputs.
(II) Time-Based contracts :- Under this type of contract, the Consultant provides services on a time basis according to quality specifications, and Consultants remuneration is based on, agreed unit rates for Consultant Staff multiplied by the actual time spent by this staff in executing the assignment and reimbursable expenses using actual expenses and agreed unit prices.
(III) Percentage Contracts: - It is one where consultants are paid an agreed percentage of the actual project cost.
(IV) Indefinite Delivery Contracts (Price Agreement or Standing Offers):-These refer to contracts in which a Consultant is hired for a specified period to undertake tasks as and when the need arises.
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