Question

What would be some of the important clauses to include in (a) routine contracts, (b) open-call contracts, and (c) job-unit contracts?

Answer 1

The need of contracting in service and care facilities is unavoidable.

a. Routine Contracts: There are many contracts for services that are performed on regular basis and are executed annually; such contracts are termed routine contracts. Some of the important clauses that are included in routine contracts are as follows:

· Obligations of all parties.

· Termination rights (quality of service)

· Price of service.

· Confidentiality.

· Limitation of liability.

· Duration not more than a year.

Example: Contract between administrator in-charge and maintenance manager

b. Open-call contracts: These contracts are established with preferred contactor to provider services on need basis. Some of the important clauses that are included in open-call contracts are as follows:

· Standard level of service,

· Specialised service required,

· Description of need,

· Limitation of liability,

· Provision of discount.

Example: Contracts for heating and cooling, plumbing etc. in a hotel.

c. Job-unit contracts: These contracts are established each time when need arises especially for infrequent major jobs. Some of the important clauses that are included in job-unit contracts are as follows:

· Mode of payment,

· Project completion targets,

· Project cost,

· Terms of providing specialized services.

· Confidentiality,

Example: Contacts for renovation or roof repair.