What is the difference between rate and running contract?

What is the difference between rate contract and running contract? – Quora. A rate contract is essentially related to a fixed rate. Thus, within the period of currency of the contract, the contractor has to supply material (irrespective of quantity) at a fixed rate.

What does rate contract mean?

A Rate contract is an agreement between the supplier and purchaser to supply items for a fixed unit price for a specified period of time i.e., till the validity of the rate contract. Rate contracts are generally employed by governmental ministries and departments since they require items in bulk.

What is the running contract?

Running Contracts. —This means a contract for a definite quantity of materials to be delivered in one or more instalments, delivery of each instalment being completed by a definite date.

What is running contract tender?

What is a target contract?

A target cost contract is a type of cost reimbursable contract under which the contractor is paid the ‘actual cost’ (usually defined in the particular contract) it incurs in carrying out the works, but subject to a target cost which is agreed by the parties at the beginning of the project.

How is rate contract?

Rate Contracts. —The Rate Contract is a contract under which, during the period of its currency, the contractor engages to supply materials on demand, irrespective of quantity, at fixed unit rates or prices, within a given period of the receipt of such demand.

What is GCC in railway?

c) “GCC” means General Condition of Contract. d) “RC” means Rate Contract.

What is a rate contract?

Rate Contracts : The Rate Contract is a contract under which, during the period of its currency, the contractor engages to supply materials on demand, irrespective of quantity, at fixed unit rates or prices, within a given period of the receipt of such demand.

What is the essence of a rate and running contract?

In running contract, the essence is supply of quantity of material within a given period by the contractor as and when ordered Under Indian Railways Accounts code, paras 407 & 408 deals with rate and running contracts. The paras are extracted below. 407.

What is a running contract in construction?

Running Contracts : The Running Contract is one under which, during the period of its currency the contractor engages to supply, and the other party to the contract to take, a specified quantity (with a percentage tolerance either way) of materials, as and when ordered, at fixed unit rates or prices, within a given period of the receipt of such

How to set up a rate contract in a category?

The process of setting up a rate contract in a category follows a set of standard steps:- Procurement spend analysis: Identification of cumulative spend, identification of key suppliers and their share of business, identification of average price of procurement, spend growth projections