Costs Analysis: Fixed Priced Contract, Sealed Bidding, and Price Analysis

1.
The Canadian Construction Documents Committee's "Stipulated Price Contract" is one example of a Fixed Priced-contract. One advantage for this certain company is that it supplies the services that has a constant demand and growth. This dictates that it provides work at a fixed price. This is more beneficial for construction businesses because planning to build a house requires setting a budget that can maximize output quality with available resources. A characteristic of this type of business is that materials can be precisely determined with the specific number and type. This means that production cost is easier to compute. The contract of service is agreed upon so that a fixed total price is assigned to an expected outcome either in service or in goods. The seller must deliver according to parameters and goals set in the contract. This type of agreement puts a pressure and risk to the contractor, because his or her party has to take full responsibility for all casts and associated loss or profit from the project. .
2.
Sealed bidding is a method of contracting that employs competitive bids, public opening of bids, and awards. The following steps are involved:
Sealed bidding is a type of acquisition that is reserved for competitive, public, and civil ownership bids.
There are 5 general elements or steps to a sealed bidding.
* Preparation of invitations for bids. Information about the requirements of bidding should be distributed in a clear and concise manner. It should include proper documents and guidelines which should assist prospective bidders in the purpose of ownership. Governing body must refer to a set of essentials that are necessary for the bidding process.
      (b) Publicizing the invitation for bids. The invitations must be officia...