In what cases can a contract be agreed to with a customer without having a clearly defined scope of work (SOW) or bill of quantities (BOQ)?

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My answer to In what cases can a contract be agreed to with a customer without having a clearly defined scope of wo…

Answer by Ken Larson:

When both parties agree that the work or the procurement of the item must proceed and an interim contract is let with a dollar ceiling to allow going forward.

The terms of the inerim contract specify a due date for full definitization of the final contract; at which time the actual costs incurred are added to an estimate to complete the job under a completed SOW or BOQ.

In U.S. government contracting the interim contract is often referred to as a “Letter Contract”.

In what cases can a contract be agreed to with a customer without having a clearly defined scope of work (SOW) or bill of quantities (BOQ)?

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About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: http://www.micromentor.org/ key words: "Federal Government Contracting"

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