Assignment 3 Contracting And Payment Options

Contracting and Payment Options Procurement and Contract Law LEG440007VA016-1146-001 August 06, 2014 Contracting and Payment Options 1. Compare and contrast three (3) payments options and discuss the pros and cons of each. In describing what payments types to be considered for various types of services and goods being sought by an government agency, (Customary contract financing, n.d., p. 641) FAR 32.113 should be referenced. Progress payments is one method of payment used in paying contractors in performance of duties in government contracting, this covered in FAR Part 32.5. Progress payments are normally paid within thirty days and are based off the amount of costs incurred in the carrying out of duties or based upon the stages completed within the guidelines of the contract. The one advantage to this type of payment method is that, it is less risk to the government, and provides motivational aspects to the contractor to deliver services or goods as stipulated within the contract guidelines. The disadvantage to progress payments is that if the contractors performance measures are not being met as required in the contract, then the government can seek repayment of progress payments in accordance with the liquidation section of FAR 52.232-16. The contracting