For these incentives, only the estimated construction costs will serve as a basis for determining a fixed amount to be included in the contract, since the incentives should only relate to construction costs, and not to planning or other costs that can be included in the estimated contract value. If aggregate demand and aggregate expenditure are not secure, as is the case in point (b) above, a framework agreement should be concluded. These types of agreements: LCA is useful vis-à-vis TCV to compare different cohorts and analyze growth. Annualizing the value of the contract eliminates the differences resulting from different contract durations, so it`s much easier to see if new bookings grow over time and if those bookings are really more valuable instead of longer. Legislation requiring a single requirement, which can be divided into several stages, or a series of similar or identical requirements, must use the total value to determine whether the legislation is applicable or not. Specific rules have been established for each type of contract and it is stressed that it is inappropriate to break down the needs of the contracting authority in order to avoid compliance with public procurement legislation. Understanding the overall value of the contract is especially useful for SaaS companies and other underwriting, but the metric is often overlooked in favor of more striking numbers. Predictive metrics like Customer Lifetime Value (LTV) impress investors and validate growth – but they are often unrealistically positive, especially in the early days of a business. The values change every two years and the next revision is due on 1 January 2014. Any purchase/order or series of purchases or contracts for which it is “reasonably foreseeable” that the value exceeds the above financial threshold must be subject to an EU-compliant tendering procedure. The calculation of the value of a purchase/contract is based on “reasonably foreseeable expenses” for or the estimated value of equipment, goods (products), services or construction work (with the exception of construction consulting services – which are covered by the definition of services where the appointment of consultants is not part of the contract).
With regard to supply and service contracts, the calculation of “reasonably foreseeable expenses” / estimated value is based on the expected costs for equipment, services (installation, training, etc.), support and maintenance, as well as consumables (calculated over the period for which assistance and maintenance and consumables should be required, but applying a minimum period of 4 years if the duration of the assistance ( maintenance services or supply of consumables) are not known). For construction work, the calculation of “reasonably foreseeable expenses”/estimated value is based on project/construction costs (with the exception of construction consulting if it is not part of the construction contract). . . .