CONSTRUCTION CONTRACTS

A construction contract provide a legal binding agreement, for both the owner and the builders, that the executed job will receive the specific amount of compensation or how the compensation will be distributed. While construction contracts serve as a means of pricing construction, they also structure the allocation of risk to the various parties involved. The owner has the sole power to decide what type of contract should be used for a specific facility to be constructed and to set forth the terms in a contractual agreement. Technical Data used in the field explained in quantity surveyor courses in rawalpindi. It is important to understand the risks of the contractors associated with different types of construction contracts. Cost plus Contracts; This type of contract involves payment of the actual costs, purchases or other expenses generated directly from the construction activity. Cost plus contracts must contain specific information about a certain pre-negotiated amount (some percentage of the material and labor cost) covering contractors overhead and profit.

Costs must be detailed and should be classified as direct or indirect costs. There are multiple variations for Cost plus contracts and the most common are: Cost Plus Fixed Percentage, Cost Plus Fixed Fee, Cost Plus with Guaranteed Maximum Price Contract, Cost Plus with Guaranteed Maximum Price and Bonus Contract. Cost plus contracts are used when the scope has not been clearly defined and it is the owner responsibility to establish some limits on how much the contractor will be billing. When some of the aforementioned options are used, those incentives will serve to protect the owner's interest and avoid being charged for unnecessary changes. Some more details of quantity surveyor courses in rawalpindi are as under. Be aware that cost-plus contracts are difficult or harder to track and more supervision will be needed, normally do not put a lot of risk in the contractor.

Contract means the General Conditions, the Supplementary Conditions, the Specifications, the Drawings, the Bill of Quantities, the Tender, the Letter of Acceptance, the Contract Agreement, and such further documents as may be expressly incorporated in the Letter of Acceptance or Contract Agreement. The contract is according to method of Payment. The agreement of how the owner will pay the contractor for work performed such as a lump-sum or cost-plus payment etc. TSK Training for Skills and Knowledge is the best institute in Rawalpindi Islamabad for Pakistani Students who wants to join quantity surveyor courses in islamabad.

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