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A Project-Based Contract sets out the terms for completing a specific project or deliverable within a fixed timeline, rather than ongoing work. Under Singapore's Employment Act, these contracts differ from regular employment agreements because they automatically end once the project is finished - common in construction, IT development, and consulting work.

These contracts must clearly define the project scope, completion criteria, and payment terms to be legally enforceable. They offer businesses flexibility while protecting both parties - contractors get clear payment milestones, while companies can bring in specialized expertise without long-term commitments. The Ministry of Manpower recognizes them as distinct from term contracts or permanent employment.

Use a Project-Based Contract when you need specialized expertise for a one-time initiative with clear deliverables. This contract type works perfectly for software development projects, construction work, marketing campaigns, or consulting assignments where the scope and timeline are well-defined.

The contract becomes especially valuable when engaging external professionals in Singapore who bring unique skills your team lacks. It helps manage costs through fixed project fees, maintains clear accountability through defined milestones, and complies with MOM guidelines on contract work. For complex projects involving multiple stakeholders, it provides essential structure while keeping everyone aligned on objectives and deadlines.

• Fixed-Price Project Contracts: Set a predetermined total cost for the entire project, ideal for well-defined scopes like building renovations or software development
• Time-and-Materials Contracts: Bill based on actual hours worked plus material costs, suited for projects with uncertain scopes or evolving requirements
• Milestone-Based Contracts: Break payment into stages tied to specific deliverables, common in construction and large consulting projects
• Cost-Plus Contracts: Reimburse actual costs plus an agreed profit margin, typically used for complex research or development work
• Unit-Price Contracts: Pay based on predetermined rates for specific units of work, popular in manufacturing or bulk service delivery

• Project Owners: Organizations or individuals who commission the project and pay for deliverables, including SMEs, MNCs, and government agencies
• Contractors: Professional service providers, consultants, or companies who execute the project scope and deliver agreed outcomes
• Legal Teams: In-house counsel or external law firms who draft and review Project-Based Contracts to ensure enforceability
• Project Managers: Oversee contract execution, monitor deliverables, and manage stakeholder relationships
• Finance Departments: Handle payment schedules, track milestones, and ensure compliance with contract terms

• Project Scope: Define deliverables, timelines, and quality standards with exact specifications
• Party Details: Gather complete business information, registration numbers, and authorized signatories from all parties
• Payment Terms: Outline fee structure, milestone payments, and any performance-linked bonuses
• Timeline Planning: Map key dates, delivery schedules, and review periods with buffer for delays
• Risk Management: Identify potential issues, necessary insurance coverage, and dispute resolution procedures
• Compliance Check: Ensure alignment with Singapore's Employment Act and relevant industry regulations

• Project Definition: Clear scope, deliverables, and completion criteria with measurable outcomes
• Party Information: Complete legal names, registration numbers, and authorized representatives
• Payment Terms: Fee structure, payment schedule, and conditions for disbursement
• Timeline Details: Start date, completion date, and milestone deadlines
• Intellectual Property: Ownership rights, transfer conditions, and usage permissions
• Termination Clauses: Valid grounds, notice periods, and settlement procedures
• Dispute Resolution: Singapore jurisdiction, mediation preferences, and arbitration procedures
• Confidentiality: Data protection obligations and trade secret safeguards

Project-Based Contracts differ significantly from an Employment Contract in several key aspects under Singapore law. While both govern work relationships, their fundamental structure and legal implications are distinct.

• Duration and Scope: Project-Based Contracts end when specific deliverables are completed, while Employment Contracts typically continue indefinitely or for a fixed term
• Benefits and Protection: Employment Contracts include statutory benefits like CPF, annual leave, and medical coverage; Project-Based Contracts typically exclude these
• Control and Management: Employment Contracts establish employer-employee hierarchies; Project-Based Contracts maintain contractor independence
• Payment Structure: Project-Based Contracts usually involve milestone or deliverable-based payments, while Employment Contracts provide regular salaries
• Legal Framework: Employment Contracts fall under the Employment Act's protection; Project-Based Contracts are governed primarily by contract law