Types Of Employment Contracts

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fee that is fixed at the inception of the contract. The fixed fee does not vary with actual cost, but may be adjusted as a result of changes in the work to be performed under the contract. This contract type permits contracting for efforts that might otherwise present too great a risk to contractors, but it provides the contractor only a minimum incentive to control costs.
Design and build contract, also known as "package deal" and 'turnkey" contracts
Turnkey drilling services offer a viable method for operators to better man age drilling risks and reduce costs. In the future, they may be able to utilize drilling management contractor services for complete field development programs. The offshore turnkey drilling industry remained a high-margin, low-volume business until about 1993 when turnkey drillers began to realize bidding prices were not competitive with most operators' internal cost estimates. Increasing market share could only be achieved by reducing margins to match the ...

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