ABSTRACT
A contract is a written agreement between two parties specifying liabilities and responsibilities in a deal of undertaking by one of the parties the supply of services, technology, facilities, material, or construction for the other party. A contract is sometimes named as an agreement. During implementation of industrial plant projects, owners require to sign contracts with other parties for services, material, technology, financing, or construction. Contracts are based either on competitive bidding or on direct negotiation with a selected or nominated bidder. Very importantly, the requirement for the contracting strategy to be formalized in an approved document is not an expression of bureaucracy, but rather a system to ensure that the strategy will be well thought of, shared, so maximizing its chances to be effective. A way in-between may be the "right of first refusal" granted to a preferred bidder.
