Fixed price/guaranteed maximum price meaning

EU, Competition & Procurement—Freedom to set resale price never goes out of fashion: The EU fines Gucci, Chloé and Loewe over €157m As a matter of law, resellers must retain substantial freedom to decide their resale prices. Manufacturers and suppliers have only limited scope to steer the amounts at which their goods are resold by retailers or other intermediaries. This holds whether the resale happens online or in physical, bricks-and-mortar stores. The constraint stems from the so‑called ‘resale price maintenance’ (RPM) rules. The European Union and Irish RPM frameworks can be outlined as follows: The EU RPM rules ✓ Suppliers may set maximum resale prices—ie the highest amount at which a reseller may supply goods. A supplier may tell a retailer, ‘you may not resell it at more than €100’. ✓ Suppliers may recommend resale prices but may not enforce the resale price...

How can owners and developers protect themselves from tariff-related cost overruns and project delays? Owners might start getting contractor demands for extra payment or more project time because of tariff impacts. The obvious first move is a robust construction contract. Wording on price escalation is crucial to reduce the chances of schedule slippage and greater financial exposure. Although the parties could tackle major cost rises later through a change order if the situation arises on the project, such orders are often mired in dispute and ambiguity. In contrast, escalation clauses offer a mechanism for principal project stakeholders to settle, in advance, how to handle higher costs before any rise and/or delay occurs. Ideally, owners can insist on anti‑escalation terms that bind contractors to material prices fixed at contract execution and agreed at signing. Failing that, an owner ought to limit its maximum liability for any escalation claim to preserve firmer overall budget certainty and retain clearer cost predictability. Critically, provisions should address...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z Facilities management Facilities management contracting is, at its core, a commercial services contract arrangement, covering ‘Hard FM’ (relating to the upkeep and fabric of a building, for example mechanical and electrical systems), ‘Soft FM’ (relating to in-building support functions such as cleaning, security and helpdesk services) or ‘Total FM’ (which can combine a number of hard and soft facilities management services), as required within buildings. See subtopic: Facilities management for construction lawyers. Fédération Internationale des Ingénieurs-Conseils (FIDIC) The International Federation of Consulting Engineers. FIDIC issues a suite of standard-form contracts for deployment on international construction projects. In common usage, ‘FIDIC’ typically refers to that family of contracts rather than the institution itself. See subtopics: FIDIC contracts 2017 onwards and FIDIC contracts pre-2017 editions in practice by practitioners. Feed-in tariff The Feed-in tariff (FIT) scheme—also sometimes known as the...

Types of pricing conduct In broad terms, EU and UK competition rules concentrate on two classes of pricing behaviour: agreements and/or concerted practices concerning price; and pricing strategies pursued by ‘dominant’ undertakings. Agreements and concerted practices Arrangements and coordinated conduct between two or more undertakings about the level at which prices are fixed or otherwise aligned (directly or indirectly via contractual devices, off‑the‑record behaviour, and/or exchanges of information). These ‘price restrictions’ (covering vertical distribution/resale terms, price parity clauses, horizontal cooperation, and cartel or cartel‑like behaviour) chiefly raise Article 101(1) TFEU/Chapter I of the UK Competition Act 1998 (CA 98) issues (see the prohibition on restrictive agreements and the Chapter I prohibition). Price coordination (whether horizontal or vertical) is generally viewed as illegitimate—being among the most problematic restraints as it conflicts with the very essence of competition (ie, the freedom to set prices competitively and independently). Nevertheless, some pricing agreements may be harmless or even pro‑competitive because...

Introduction Project Partnering Contracts originated from the work of Professor David Mosey PhD at King’s College, London, whose scholarship examines the cross-disciplinary links between construction law and the changing practices of procurement and project management. This embraces study of partnering, alliancing, joint ventures and other routes to collaborative working. The contracts are backed by King’s College and the Association of Consultant Architects. PPC2000 was revised in 2003, 2008 and again in 2013, which is the current edition. It is thought there are no reported cases on PPC2000, suggesting either its effectiveness or, alternatively, its limited deployment. Pricing under PPC2000 Under the PPC2000 Partnering Contract, pricing follows a two-stage approach designed to achieve transparency and cost certainty, while encouraging the pursuit of cost savings, added value and value engineering. The pricing mechanism is split into two phases: the pre-construction phase and the construction phase. Pricing during the pre-construction phase At the outset of the pre-construction phase, the Client appoints design consultants and cost consultants: the design...