To: jan m. who wrote (15297 ) 4/23/1998 2:54:00 PM From: Willing2 Read Replies (1) | Respond to of 31646
A Master Consulting Agreement usually defines the terms and conditions under which work will be done and billed. They are frequently used by large distributed companies to achieve consistency or expectations and budgetary control for work to be done by a service provider. It might look like this: TAVA will be paid $X(a) to evaluate and report what work needs to be done for sites fitting the (a) criteria; $X(b) for (b) criteria sites, $X(c) for (c) criteria sites etc. Remediation efforts will be prioritized by the Company; the Labor rate for all work to be performed will be $Y; materials will be supplied at vendor cost + Z%. At the Company's option, the supplier (TAVA) will replace process systems performing XYZ function with the suppliers Y2KProcessOne system at a fixed rate of $ZZZZZ per system. If the Company knows that it has, say 100 plants creating a constituant product that is used by 1000 of the company's other plants to produce the consumer product,a Master Agreement allows management to budget for the worst cast (replace all 100 lines with the supplier's Y2KProcessOne. Having a single supplier means consistency and accountability for quality -- and price. The supplier gets all the work ($$$), and in return takes on some of the risk since each site will have slightly different needs and costs. Some suppliers will assemble "TEAMS" that travel to all the client Company's locations, become experts on this client's operation, and leave behind a consistent solution. By about the 4th plant, these teams can become *VERY* efficient, beating the normal work time which means higher profits for the supplier, in this case TAVA! These agreements are usually good for both companies.