Mar 14, 2025
What are Commercial Contracts? An Essential Guide to Secure Commercial Contracts
When two businesses agree on mutual terms to work together on a project or to procure goods and services for a business, the deal will be finalized through a contract. The commercial contracts form the basis of most of the interaction between the two private sector organisations. The skill with which the contracts are drawn is also important. While successful contracts can increase business revenue, poorly structured contracts can also have a negative financial effect on the business. The commercial contracts are drawn on a standardized system of stages. What are Commercial Contracts? Commercial contracts are legally enforceable agreements between two or more parties. At companies, in-house lawyers draft contracts that inform the stakeholders of the Dos and don’ts and terms of upcoming engagements. These contracts assist the buyers in receiving the intended products and services on time and in the agreed quantity. They also aid the sellers in getting appropriate and timely payments. The properly drafted commercial contracts will help contracts in helping the costly litigation. In the rise of unexpected events, such as the breach of contract, these contracts will act as a guide. They will generally include effective dispute-resolution mechanisms. Typical examples of commercial contracts include acquiring […]
Jan 1, 2025
What is a Subcontract? What is the Difference Between Prime Contracting vs Subcontracting?
Subcontracting is a contract between the main contractor and the subcontractor, where the subcontractor is expected to complete a specific task or a specific portion of the project for the prime contractor. Unlike the prime contractors, the subcontractors do not work directly with the government but for and under the other contractors. Thus, subcontracts help contractors who are not directly involved with the Federal agency still participate in the Federal procurement process. Also, some government contracts will require other small and large businesses to subcontract with the other businesses to create more opportunities for small businesses and to involve themselves in the federal contracting process. Who is a Subcontractor? A subcontractor is a contractor who has been specifically hired to complete certain tasks offered by the prime contractor on the project. The subcontractors will be specialists in specific tasks such as electrical systems, window installation, software programming, etc. Since the subcontractors perform more specialized work, they render their service only when required and not consistently throughout the project window. There are chances for a project to have only subcontractors and not prime contractors, especially when the owner of the property is managing the contracting work onsite. Sub-contracting and a subcontractor […]
Dec 12, 2024
What is a UEI Number? Importance and How to Get a UEI Number?
For small businesses that wish to do business with the Federal government, they would require a unique identifier number for their business. This is known as the UEI. The government provides this number, which is similar to the tax ID number. This is of tremendous use in identifying the businesses that are eligible for receiving federal grants, awards, and contracts. The UEI number is optional for businesses that work exclusively with individual consumers and private companies. However, if the business plans to pursue contracts with the federal government, then the UEI will be required. Introduction of the UEI number for Federal contracts Businesses are required to obtain the UEI number to be eligible to access federal awards and grants. In April 2022, the federal government replaced its old identifier, namely the Data Universal Numbering System number or the DUNS, with the UEI. At present, all of the Integrated Award Environment Systems from the Federal government make use of the UEI numbers instead of the DUNS number. Thus, all the businesses and entities that wish to perform business with the federal government must register for their UEI. Difference Between the UEI and the DUNS Number The UEI is completely different from […]