Advantages And Disadvantages Of Construction Contract

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CONSTRUCTION CONTRACTS AND THEIR DOCUMENTS Introduction: Making a work or a construction project is not an easy thing and it demands many stages to facilitate the work.One of the most important stages that facilitates the work and gives the contractor and owner warranty is the “construction contracts” Construction contract is defined as an official document that guarantees that the given job gets its compensation and/or how the compensation can be distributed , also this contract studies the assets and it is considered as a common or legally connecting agreement between two parties based on the policies and conditions that is mentioned in the document form . It is possible to have one or more parties or owners in the same contract, but the…show more content…
 It makes the calculation of the payment of the contractor easier according to the amount of the work he did .  It allows the client to relate the cost of his project to betangible and measurable results.  It gives freedom to change and alter the construction work.  All tenderers price on exactly the same basis  It is not complicated method , since the plans and specification do not need to be completed in detail. Some disadvantages for this method:  The cost of the project can be limitless when any other unit of measurable time used such as days,hours  The quality of the work may suffer  Misleading bidding Advantages of lump sum construct :  Owner knows the cost at outset  Contactor selection is relatively easy  Contractor should assign best personnel due to maximum financial motivation to achieve early completion and superior performance. Disadvantages:  Changes in lumpsum contract is difficult and costly  Early project start is not possible because of need to complete design before bidding  Contractor is free to choose
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