types of contracting contracts;
Contracting contracts can be divided in different ways according to the type of work and insurance premium coefficients; such as executive-service or consulting contracts, mechanical or manual contracts, etc., but generally these contracts are classified into three main categories:
1- Contracts subject to the rules of construction projects, 2- Non-construction contracts, 3- Special cases of non-construction contracts
Construction project contracts
One side of construction contracts is always the government or government agencies. In construction contracts, the insurance premium received is much lower than non-construction contracts, so the employer and contractor always try to ensure that their contracts fall within this framework. The following two conditions are required for contracts subject to construction plans:
a) The contract is concluded based on the basic price list of the program and budget organization (contracting contracts) or the rules of the said organization type (consulting contracts).
b) All or part of the operation budget is financed from government construction credits (national, regional, provincial construction credits).
The amount of insurance premium for construction contracts
1- The insurance premium for construction consulting contracts is 14% of the gross performance in lump sum plus 1.6% as the unemployment insurance premium, totaling to the amount of 15.6% of the gross performance. In this type of contracts, the contractor’s share is 3.6% and the employer’s share is 12%.
2- The insurance premium for contracting (executive) contracts is a lump sum of 6% of gross performance plus 0.6% as unemployment insurance premium, totaling 6.6% of gross performance. The contractor’s share of the insurance premium is 1.6% and the employer’s share is 5%. If the contractors implementing the contracts included in the construction projects assign a part of the implementation of the operations subject to the contract to the subcontractors during the contract, if the insurance premium related to the main contract is paid, the collection of the insurance premium for the subcontractor contract will be canceled.
Non-construction contracts
Subjects of all contracts without conditions mentioned in the section of construction plans are considered non-construction contracts, and the insurance premium for such contracts is as follows:
1- Insurance premium for contracts in which the consumables are generally the responsibility and expense of the contractor or the subject of the service contract and the type of work requires that they be done mechanically, at the rate of 7% gross of the total work and as unemployment insurance is
2- The premium for all wage and non-mechanical service contracts is 15% gross of the total work and as unemployment insurance.
3- In cases where part of the materials are provided by the contractor and part by the contractor, the value of the materials assigned to the contractor will be added to the gross of the total work and the amount of the insurance premium will be 7% of the gross of the total work and as an unemployment insurance premium.
4- In cases where the subject of the contract is the provision of services and the type of work requires that a part is done mechanically (with mechanical equipment and machinery belonging to the contractor) and a part is done manually, the insurance premium for the mechanical part is 7% and the insurance premium for the manual part is The source is calculated at 15%.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Group of accountants, auditors, Tabriz
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