What’s the differences and any good or bad points on each?
Depends on client ,job , timespan loads and a thousand other things …especially your relationship with the client.
Tell us more
AFAIK The basic summary is:
Closed book, its a fixed price contract, the client pays a fixed price for the period the haulier tenders for. If the haulier under estimates the price for the job… tough
These tend to be the factory to warehouse jobs where the client wants a known amount of vehicles/loads per day. But they can be more complicated scenarios.
The recent news story of the NHS 111 contract being dropped by NHS direct because they where not making a profit is a classic example of a closed book contract.
Open Book, the client pays for day to day items negotiated outside the contract (i.e.: unexpected costs) & the haulier is paid a fixed price for the basics.
Most open book contracts Ive know are the supermarket RDCs & such like, where seasonal variations in demand cannot be calculated. where firms such as Stobart & DHL do the haulage
Yes we do the factory to warehouse to rdc.
LASHHGV:
Yes we do the factory to warehouse to rdc.
IMO thats usually closed book ............ Id hate to be the person pricing a fixed term contract tender up for that