Benjamin Franklin said, „Time is money.“ Whichever page you`re on, reduce construction time by having a clear plan with this document. Lump-sum contracts are the initial type of contracts used for construction projects. Rather, they are considered framework contracts compared to the other contracts listed in this article. „Lump Sum“ contracts cover the entire project, including subset contracts, and are calculated by appreciating individual orders with tool and practice estimates. This type of contract is ideal for construction projects that are easy to define in terms of scope and are unlikely to change much during the project. (e) descriptions of dispute resolution systems that quickly and effectively address all problems encountered during the construction phase; Time and equipment contracts are preferred when the scope of the project has not been clearly defined or has not been defined. The contractor and the owner must agree on an hourly or daily rate and the additional costs that may result from the construction process. Costs must be considered in the contract as indirect, direct, common and markup. This type of contract includes a total fixed price for all construction-related activities.
Lump sum contracts may include incentives or benefits in the event of early termination or penalties, known as liquidated damages, for late termination. Lump sum contracts are preferred when a clear scope and a defined timetable have been verified and agreed upon. Unit price contracts are for individual transactions where operations and work can be easily measured and evaluated by quantity – whether time or amount – in a line diagram. Each price position per unit may include work, materials, profit for the worker and equipment costs. Unit price contracts are most appropriate for small construction contracts, sub-projects of a large project or markets where steps are repeated and are easily measurable, such as Z.B. square meter or distance. For example, a tiler could use a unit price contract because he knows exactly how many tiles would be used, he can measure the number of square meters or a floor and use the same types of materials each time they lay tiles. The advantage of unit price contracts is that contractors can develop specific contracts for each construction trading provider working on a project. The downside of this type of contract is that it takes a long time to establish, as a contractor must list every aspect and part of a contract as well as the precise payment of the tasks performed. A construction rights advocate provides a large number of legal services that can truly assist the client in all aspects of his construction project.