Types Of Contract Method For Construction Management

To incoming students in the construction management discipline., the three types of research that will be described in this paper are scholarly journals, trade journals and popular magazines, these will also be accompanied with examples of a research topics. Students can use these researching strategies for the following: essays, lab reports, reviews, and annotations. Knowledge of these resources will ensure success in the program.

A contract is an official agreement between two parties. There are different types of contract, such as sale and purchase of a business agreement, partnership agreements, lease of business premises, lease of plant and equipment and employment agreements. The format can vary too. It can be face to face, written, or distance selling. The specifications of a contract involve offer and acceptance, the intention to create legal relations, lawful considerations, capacity and legal formalities such as terms and conditions.

v. This is applicable to our case because the negotiation and contract signing payments can be considered arrangement considerations because the payments are fixed and therefore, should be allocated over the three

A contract is formed when an offer by one party is accepted by the other party. Consideration is the price paid for the promise of the other party. The price must be something of value, although it need not be money. Consideration may be some right, interest or benefit going to one party or some, losses or responsibility given, suffered or undertaken by the other party.

* Terms allowing parties to vary the contract price known as a price variation clause.

Fixed-price contracts use a fixed total price for the defined product, service, or result to be provided. The seller has the most risk in this contract type because they are obligated to complete the contracts and they will have to pay financial damages if they do not complete it. In the cost-reimbursable contracts, cost reimbursements are involved with additional fee that represents seller profit. This contract type is flexible especially when the project scope changes. Buyers have the most risk in this contract because it is possible that sellers increase prices and fees in the process. The time and material contracts is a hybrid of the fixed-price contracts and cost-reimbursable contracts. Buyers have the most risk in this contract type because the contracts can be open-ended allowing the sellers to increase the price of materials or services.

Give an example of each of the two types of contracts. Explain which type of contract is used in your organization. (If you are not currently employed you can give a hypothetical example or an example from your experience).

A document guaranteeing the payment of a specific amount of money is called a negotiable instrument. Explicitly, the negotiable instrument guarantees the precise amount of money to be paid on demand or a set time, with the payee normally named on the document. This instrument is governed by state statutory law. Autonomously, each state has implemented with some modifications Article 3 of the Uniform Commercial Code (UCC). The UCC defined the validity of a negotiable instrument.

A Fixed Price contract provides for a price which normally is not subject to any adjustment unless certain provisions are included in the agreement, such as contract change, economic pricing, or defective pricing. These contracts are negotiated usually where reasonably definite specifications are available, and costs can be estimated with reasonable accuracy. A

Two basic types of competitively bid construction contracts are lump-sum and the unit-price contract. The lump-sum contract is when the contractor agrees to complete all work for a pre-determined price including profit and the contract. The unit-price contract is when the contractor quotes work on units separately instead of entire project. Price is based on units of work performed, and cost varies depending on the quantities of units. Building the piers to support a large suspension bridge will

A document guaranteeing the payment of a specific amount of money is called a negotiable instrument. The negotiable instrument guarantees the specific amount of money to be paid on demand or a set time, with the payee normally named on the document. This instrument is governed by state statutory law. Each state has implemented with some modifications Article 3 of the Uniform Commercial Code (UCC). The UCC defined the validity of a negotiable instrument.

When it is time to notify the contractor of personnel authorized to represent the contracting officer in administering contract requirements, notices should be completed with name, position, authority in representing the contracting officer, and applicable contract clauses (Acquisition.gov, 1994).

1. For the following types of undertakings, which contract modes are most appropriate? Be prepared to explain the rationale behind your choice.

This type of procurement strategy is a ‘fast track’ strategy. Client pays a sum of money to hire a management contractor to manage the whole construction project. Therefore, some early work can be carried out before the design is complete. The contract for the construction projects are between the management contractor and sub contractor. The final cost for the project can not be identified until the final work has been awarded.

Term/Jargon that I am unfamiliar with  Billing Terms to retailers (pg. 2, middle of paragraph 2)     My guess of what it means  Conditions attached to a sale?    