Grants vs. Contracts
Commonly folks have asked me what the technical difference is between a contract and a grant. The difference is not about the dollar value or who the buying entity is nor the kind of work being done. Instead it is about the legal concept of default. In my eyes, the corner stone of whether something should be called a grant or a contract lies in whether one is legally bound to produce results as one is in a contractual relationship or whether you are simply granted funds to do something. Did you get that nuance? Perhaps that is oversimplifying it.
Essentially, a contract is a legally binding document in which the parties make promises to deliver a product or service in exchange for consideration (usually money.) A grant on the other hand is when one party grants funds to another party to do something, in reasonable hopes that the task can be accomplished. If the task is accomplished ? great, everyone is happy and it could lead to more grant funding! On the flip side, if the task is not accomplished there are most likely no legal ramifications (assuming you have broken no other laws) as would be the case in a contract.
If we were to compare and contrast the two mechanisms we would say that a contract has two parties exchanging promises where one party delivers and one party pays. A grant however has two parties where one party gives the money and one party performs the objectives in hopes of achieving them. Do you see the difference now?
In summary, the difference between the two mechanisms ? grant vs. contract mainly deals with the legal concept of default. If you do not deliver under a contract you are in "default" and can reasonably assume some justifiable action may be taken against the party that did not hold up its end of the deal. However, if you do not deliver under a grant, minimally you can rest assured that you will not deal with financial or legal repercussions.
However, from a business perspective, if you do not produce under either mechanism it is fairly likely that you will not receive those kinds of funds again in either a grant or a contract form. So as much as you might not be heading off to jail, you may find yourself wondering where your next meal is coming from and defending your good name.
Accordingly, if you are in the Government Contracting arena it is always wise to make sure you understand which instrument you are working under. If you are faced with using a contract rather than a grant and you have some concern surrounding whether you can attain a goal or the task at hand, you will definitely want to use a "best efforts" type contract. This will allow you to operate as if it were similar to a grant where you have high hopes of attaining said goal, but ultimately not guaranteeing you can deliver.
Lisa DeMaio is the president and founder of Virtual Contract Manager, LLC, which is a one-stop "information shop" for and about the Contract Management Community. Let Virtual Contract Manager be your resource for Contract Management information. Come visit Virtual Contract Manager and get a wealth of FREE Contract Management information and to sign up for our content-rich monthly newsletter. Let Virtual Contract Manager keep you one step ahead of the game! http://www.virtualcontractmanager.com/
Mobile Car and Truck Washing Vehicle Placement
To maximum potential profits and dollars in a mobile washing business it pays to set up in your mind in advance the best and most strategic place to park, before stopping to wash. You will obviously want to park your rig in a location that allows you to do as many cars as possible without moving the vehicle. For instance; let us say that your hose for water is one hundred plus feet but your vacuum hose is only forty feet, so if you have four cars in close proximity and one is a vacuum, park closest to that car. This way you can wash all four cars without moving the truck or rolling up the hoses, thus maximizing efficiency.
Successfully Adding a Service To Your Business
There will come a time in your business where you feel ready to add another service offering. To make this successful, there are ten tips to consider before moving ahead.
How to Create an Employee Manual
Large corporations use employee manuals to both educate employees about policies and protect themselves legally. Whether or not you need an employee manual is your decision, though it can be a great tool for keeping your policies consistent.
Have You Thanked Your Competitors Today?
Competition in the business world is often viewed as a negative thing, but it doesn't have to be. Competition can benefit you, your competitor, and especially your customer!
Why Small Businesses Fail (or Fail to Thrive)
Tammy, a skilled and gifted horticulturist, called me to discuss what she needed to know to start her own florist and landscaping business. She had been in the horticulture industry for 10 years and was incredibly skilled at working with flowers and plants ? one of the best. She also had great design skills, as well as good customer service skills. But she had little business management experience and less self-employment experience.
Success & The Nature of Things
The story is told of a tiger chasing some goats to catch one for dinner. During the chase the tiger is injured and as she is dying, gives birth to a tiger cub. The goats had never seen a baby tiger before, so they stopped running to watch and decided to make the motherless cub a member of the goat herd.
How to Handle Rejection When You Start an Office Cleaning Business
"If at first you don't succeed, then skydiving definitely isn't for you."
A corporate shell could be liken to a house that had been occupied by a family, prior to the family moving out it was a home. But now it is just shell, a skeleton a plain house with nobody in it, but if a family was to purchase the house and moves in, it becomes a home.
Looking for a New Office Chair?
Perhaps you are building a new home office or you are redoing the one you have. Or, maybe you are looking for an office chair to replace that broken down model sitting in your office. Regardless, the office chairs of today offer more then just comfort. Choosing an office chair can be as much fun as getting a raise! Well, maybe it's not that good, but it's still a great moment!
Is Your Business Profitable?
What's your job profitability? Do you know?
What To Consider Before Buying A Franchise
Here are some useful tips on what to consider before buying a franchise. Before investing in any franchise system, be sure to get a copy of the franchisor's disclosure document. Sometimes this document is called a Franchise Offering Circular. You should read the entire disclosure document.
Is Your Business Making Money?
Is your business making money? Would you know?
Starting A Concrete Cleaning Pressure Washer Business
Concrete cleaning can be a lucrative business to start. Here are some tips which will help you do it right.
When to Say NO!
When is it a good thing to say no to a request?
Mobile Detailing VS Fixed Site Detailers
Mobile detailers will find themselves with lots of competition even if they do not see them around town. There are also many fixed site detailers who specialize in wholesale detailing or the retail detail or both. Many fixed site detailers have accounts with new and used car dealerships. This provides them with lots of work. If they are good, they usually do prep work for all new cars at all the local dealerships or share the work with a couple of other detail shops, additionally there are always lots of used trade ins at new dealers and used car lots. If the shop is totally busy, obviously they: Have a great location, or Do extremely great quality, or Have very competitive rates, or all of these.
Tell Me The Reasons Why I Should Believe You?
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?
Starting a Small Business? ?Tips from a Veteran
Congratulations, you are starting a small business! You are taking charge and going for your piece of the American dream! Your excitement is high, and the adrenaline is pumping! Everyone dreams of freedom and owning a successful business, but not everyone can successfully create that reality. Now that you've made the commitment to give it a shot, let me give you the single most important tip that I can give you to insure your success. Businesses that succeed whether large or small all begin with a business idea. Your challenge is to determine if your idea will be a winner or a loser.
Mobile Carwash; Senior Citizens and Mobile Homes
Senior citizens are generally not a large marketing segment for mobile detailers or car washers, however, they should not be ignored. You will find in a near by area a seniors-only mobile home park. You will also find square dance clubs and senior centers. All of these places can be extremely good places to look for new business. If you want to accelerate word of mouth advertising, you should meet with people in these groups. Wash cars at senior centers while they play cards. Hand out flyers, etc.
Financial Dose for Business
The goals of businesses have undergone much evolution from the times when entrepreneurs were content with anything that they received above the capital invested. Businesses now want to expand their reach globally, riding on the wave of technology.
Challenging the Gospel of Growth -- Must Business Grow to Survive?
A cherished business doctrine is that growth must be a primary business purpose: "grow or perish" is a mostly unquestioned truth. At South Mountain we favor certain kinds of growth, but not expansion for its own sake, which author Edward Abbey described as "the ideology of the cancer cell." We embrace growth to achieve specific goals, but always with consideration of the consequences: it may disrupt and endanger treasured qualities. We look for ways to develop and thrive without enlarging, thereby holding to limited growth. When we grow, it is by intention rather than in response to demand. We think about "enough" rather than "more"-enough profits to retain and share, enough compensation for all, enough health and well-being, enough time to give our work the attention it deserves, enough communication, enough to manage, enough headaches.
|© Athifea Distribution LLC - 2013|