What Is a Follow on Contract
When it comes to business contracts, there are two types of contracts: follow-on contracts and standalone contracts. In this article, we’ll be discussing what a follow-on contract is and how it differs from a standalone contract.
A follow-on contract is a type of contract that is awarded to a contractor who has already completed a previous contract with the same client. This type of contract is typically awarded to a contractor who has performed well on the previous contract and has demonstrated the ability to deliver quality work on time and within budget.
Follow-on contracts are also known as “consecutive contracts” or “option year contracts”. The purpose of a follow-on contract is to continue and expand the work done by the contractor in the previous contract, providing continuity of service to the client.
Follow-on contracts are different from standalone contracts in a few ways. Standalone contracts are awarded to contractors who are new to the project or who have not previously worked with the client. These contracts are typically the result of a competitive bidding process and are awarded to the contractor with the best bid.
Follow-on contracts, on the other hand, are not usually the result of a competitive bidding process. Instead, they are awarded to the contractor who has already worked with the client and has a proven track record of delivering quality work.
Follow-on contracts are also usually shorter in duration than standalone contracts. This is because the work being done is typically an extension of the previous contract, rather than an entirely new project.
In summary, follow-on contracts are a way for clients to continue working with contractors who have already delivered quality work in a previous contract. These contracts provide continuity of service and are typically awarded without a competitive bidding process. If you’re a contractor who has completed a previous contract successfully, a follow-on contract may be a great opportunity to continue working with a client and expanding your business.
