5 Different types of construction contracts and their suitability 1 - SlideServe
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5 Different types of construction contracts and their suitability 1 - SlideServe
1. Lump sum Contract: A lump sum contract is normally used in the construction industry to reduce design and contract administration costs. It is called a Lump Sum because the contractor is required to submit a total and globalprice instead of bidding on individual items with this kind of...
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Types of Construction Contracts 1. Lump Sum Contract In this contract, the contractor agrees to complete the project for a fixed total price. Suitable for projects with clearly defined scope. 2. Item Rate Contract Payment is made based on the actual quantity of work done at pre-agreed unitrates. Useful for projects with variable quantities. 3. Cost Plus Contract The contractor is paid for actual cost incurred plus a fixed percentage or fee. Usedwhen the scope is uncertain. 4. Time and Material C
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