Valuation of Contracts Clause Samples

Valuation of Contracts. In calculating the value of contracts for the purposes of implementing this Chapter entities shall base their valuation on the maximum total estimated value of the procurement over its entire duration including optional purchases, premiums, fees, commissions, interests and revenue streams or other forms of remuneration provided for in such contracts.

Valuation of Contracts. 1. In estimating the value of a procurement for the purpose of ascertaining whether it is a covered procurement, a procuring entity shall: (a) take into account all forms of remuneration, including any premiums, fees, commissions, interest, other revenue streams that may be provided for under the contract and, where the procurement provides for the possibility of option clauses, the maximum total value of the procurement, inclusive of optional purchases; and (b) without prejudice to paragraph 2, where the procurement is to be conducted in multiple parts, with contracts to be awarded at the same time or over a given period to one or more suppliers, base its calculation on the total maximum value of the procurement over its entire duration. 2. In the case of procurement by lease, rental, or hire purchase of goods or services, or procurement for which a total price is not specified, a procuring entity shall estimate the value on the basis of objective criteria or apply the following basis of valuation: (a) in the case of a fixed-term contract: (i) where the term of the contract is 12 months or less, the total estimated maximum value for its duration; or (ii) where the term of the contract exceeds 12 months, the total estimated maximum value, including any estimated residual value; (b) where the contract is for an indefinite period, the estimated monthly instalment multiplied by 48; and (c) where it is not certain whether the contract is to be a fixed-term contract subparagraph (b) shall be used. 3. Where the total estimated maximum value of a procurement over its entire duration is not known the procurement shall be a covered procurement, unless otherwise excluded under this Agreement.

Valuation of Contracts. 1. Each Party shall ensure that, in determining whether a contract is covered by this chapter, its entities apply the provisions of paragraphs 2 through 7 to calculate the value of that contract. 2. The value of the contract shall be the estimated value at the time of publication of the call for bids in accordance with Article 15-11. 3. When calculating the value of a contract, entities shall take into account all forms of remuneration, including bonuses, fees, commissions and interest. 4. In addition to the provisions of Article 15-02, paragraph 4, an entity may not choose a valuation method or split the purchase requirements into separate contracts for the purpose of evading the obligations contained in this chapter. 5. When an individual requirement results in the award of more than one contract or the contracts are awarded in separate parts, the basis for valuation shall be: a) the actual value of similar successive or recurring contracts entered into during the preceding fiscal year or the preceding twelve months, adjusted where possible for changes in quantity and value anticipated for the following twelve months; or b) the estimated value of successive or recurring contracts to be entered into during that fiscal year or in the twelve months following the initial contract. 6. In the case of lease or rental contracts, with or without an option to purchase, or contracts in which a total price is not specified, the basis for valuation shall be: a) in the case of contracts entered into for a specified term, if the term is twelve months or less, the calculation shall be made on the basis of the total value of the contract during its term, or, if greater than twelve months, on the basis of the total value including the estimated residual value; or b) in the case of contracts for an indefinite term, the basis shall be the estimated monthly payment multiplied by 48. If the entity is uncertain as to whether a contract is for a definite or indefinite term, it shall calculate the value of the contract using the method indicated in paragraph b). 7. When the bidding conditions require optional clauses, the basis for valuation will be the total value of the maximum allowable purchase, including all possible optional purchases.

Valuation of Contracts. 1. The following provisions shall apply in determining the value of contracts2 for purposes of implementing this Agreement. 2. Valuation shall take into account all forms of remuneration, including any premiums, fees, commissions and interest receivable. 3. The selection of the valuation method by the entity shall not be used, nor shall any procurement requirement be divided, with the intention of avoiding the application of this Agreement. 4. If an individual requirement for a procurement results in the award of more than one contract, or in contracts being awarded in separate parts, the basis for valuation shall be either: (a) the actual value of similar recurring contracts concluded over the previous fiscal year or 12 months adjusted, where possible, for anticipated changes in quantity and value over the subsequent 12 months; or (b) the estimated value of recurring contracts in the fiscal year or 12 months subsequent to the initial contract. 5. In cases of contracts for the lease, rental or hire purchase of products or services, or in the case of contracts which do not specify a total price, the basis for valuation shall be: (a) in the case of fixed-term contracts, where their term is 12 months or less, the total contract value for their duration, or, where their term exceeds 12 months, their total value including the estimated residual value; (b) in the case of contracts for an indefinite period, the monthly instalment multiplied by 48. If there is any doubt, the second basis for valuation, namely (b), is to be used. 6. In cases where an intended procurement specifies the need for option clauses, the basis for valuation shall be the total value of the maximum permissible procurement, inclusive of optional purchases.

Valuation of Contracts. 1. The following provisions shall apply in determining the value of contracts2 for purposes of implementing this Agreement. 2. Valuation shall take into account all forms of remuneration, including any premiums, fees, commissions and interest receivable. 3. The selection of the valuation method by the entity shall not be used, nor shall any procurement requirement be divided, with the intention of avoiding the application of this Agreement. 4. If an individual requirement for a procurement results in the award of more than one contract, or in contracts being awarded in separate parts, the basis for valuation shall be either: (a) the actual value of similar recurring contracts concluded over the previous fiscal year or 12 months adjusted, where possible, for anticipated changes in quantity and value over the subsequent 12 months; or (b) the estimated value of recurring contracts in the fiscal year or 12 months subsequent to the initial contract. - Annex 2 contains sub-central government entities. - Annex 3 contains all other entities that procure in accordance with the provisions of this Agreement. - Annex 4 specifies services, whether listed positively or negatively, covered by this Agreement. - Annex 5 specifies covered construction services. Relevant thresholds are specified in each Party's Annexes. 2This Agreement shall apply to any procurement contract for which the contract value is estimated to equal or exceed the threshold at the time of publication of the notice in accordance with Article IX. 5. In cases of contracts for the lease, rental or hire purchase of products or services, or in the case of contracts which do not specify a total price, the basis for valuation shall be: (a) in the case of fixed-term contracts, where their term is 12 months or less, the total contract value for their duration, or, where their term exceeds 12 months, their total value including the estimated residual value; (b) in the case of contracts for an indefinite period, the monthly instalment multiplied by 48. If there is any doubt, the second basis for valuation, namely (b), is to be used. 6. In cases where an intended procurement specifies the need for option clauses, the basis for valuation shall be the total value of the maximum permissible procurement, inclusive of optional purchases.

Valuation of Contracts. 1 The following provisions shall apply in determining the value of contracts for purposes of implementing this Part. 2 Valuation shall take into account all forms of remuneration, including any premiums, fees, commissions and interest receivable.

Valuation of Contracts. 1. Each Party shall ensure that, when determining whether a contract is covered by this chapter, its entities to implement the provisions of paragraphs 2 to 7 in calculating the value of the contract. 2. The value of the contract shall be estimated at the time of publication of a notice in accordance with article 15-11. 3. In calculating the value of a contract, entities shall take into account all forms of remuneration, including premiums, fees, commissions and interests. 4. In addition to paragraph 4 of Article 15-02, an entity may not select a valuation method or purchases subdivided into separate contracts in order to avoid the obligations contained in this chapter. 5. Where an individual requirement would result in the award of a contract or contracts are awarded in separate parts, the basis for valuation shall be: a) The actual value of the successive contracts of the same type awarded during the preceding 12 months or fiscal year, adjusted where possible, in the light of the changes in quantity and value for 12 months; or b) The estimated value of the successive contracts of the same nature concluded over the fiscal year or 12 months following the initial contract. 6. In the case of leases, with or without an option to buy, or contracts which do not indicate a total price, the basis for valuation shall be in the case of: a) Contracts for a given period, the calculation shall be based on the total contract value for its duration; or b) Contracts for an indefinite period, the estimated monthly payment shall be multiplied by 48. If the entity is not certain whether the contract is limited in time and the value of the contract, calculated using the method referred to in subparagraph (b). 7. Where the tender consider clauses allowing the listing of alternative or substitute goods or services, the basis for valuation shall be the total value of the maximum permissible, including all possible optional purchases.

Valuation of Contracts. 1. In estimating the value of a procurement for the purposes of ascertaining whether it is a covered procurement under this Chapter: (a) valuation shall take into account all forms of remuneration, including any premiums, fees, commissions, interest and other revenue streams that may be provided for under the contract; (b) the selection of the valuation method by a procuring entity shall not be used, nor shall any procurement requirement be divided, with the intention of avoiding the application of this Chapter; and (c) in cases where an intended procurement specifies the need for or provides for the possibility of option clauses, the basis for valuation shall be the maximum total value of the procurement, inclusive of optional purchases. 2. In the case of procurement by lease, rental, or hire purchase of goods or services, or procurement for which a total price is not specified, the basis for valuation shall be: (a) in the case of a fixed-term contract: (i) where the term of the contract is 12 months or less, the total estimated maximum value for its duration; or (ii) where the term of the contract exceeds 12 months, the total estimated maximum value, including any estimated residual value; (b) where the contract is for an indefinite period, the estimated monthly instalment multiplied by 48; and (c) where it is not certain whether the contract is to be a fixed-term contract, subparagraph (b) shall be used.

Valuation of Contracts. 1 The following provisions shall apply in determining the value of contracts for purposes of implementing this Part.