What Are The Advantages And Disadvantages Of Design And Construction Contract

809 Words4 Pages
The design and construction contract offers the following advantages: shorten design time Simplify construction plans, alternatives to value engineering are always available for discussion and analysis, reduce construction schedule, minimize communication channels with a single point of contact, minimum change orders, quick calendar, adapted to the actual conditions of the site easily, identify the elements with a long previous term, allowing to repeat the project.

The contractual agreement under a management contract may it is also referred to as a "construction management contract" or "project management contract". In this structure project manager is responsible for coordinating the designers and the willingness of the contractors to do the work. The prime contractor does not necessarily accept contractual liability for the result of the work, but simply acts in a leadership role on behalf of the employer.

A "lump-sum contract" is a contract whereby the contractor receives a lump sum at the conclusion of the work concluded at the beginning of the contract, which is modified only on the basis of the specific provisions allowing the contract to be amended.

Under the tariff and the type of reimbursable cost contract, commonly referred to as "cost plus" or "principal cost", the cost of performing the work will be reimbursed to the contractor, with the exception of the profit and loss items. Contingency. These elements are covered by a fixed fee at the beginning of the
Get Access