The contract is various types, for execution of civil engineering works. The contract are
» Lump Sum or Fixed Price Contract
» Measurement contract
» Turnkey Contract
» Design and BuildCost Plus Contracts
» Unit Price Contracts
» Time and Material ContractsItem rate contract
» Percentage rate contract
» Labour contract
» Piece-Work agreement
» Target Contract
1. Lump Sum or Fixed Price Contract :-
The contractor agrees to perform the work specified and described in the contract for a fixed price. The price of a fixed contract can only be changed upon the execution of a change order, under which the owner and the contractor either
2. Measurement contract :-
A measurement contract might also be appropriate on projects where the design has not been completed in sufficient detail for bills of quantities to be produced.It should be possible to describe the works in sufficient detail to determine a programme and to obtain rates from tenderers. Generally tenderers rates will be based on drawings and approximate quantities.
3. Turnkey Contract :-
A turnkey contract is a business arrangement in which a project is delivered in a completed state. Rather than contracting with an owner to develop a project in stages. The developer is hired to finish the entire project without owner input.
4. Design and Build :-
Design and Build procurement works on the basis that the main contractor is responsible for undertaking both the design and construction work on a project, for an agreed lump-sum price. Design and build projects can vary depending on the extent of the contractor’s design responsibility and how much initial design is included in the employer’s requirements.
5. Cost Plus Contracts :-
The Cost Plus Contract is a type of a construction contract under which the owner agrees to pay the complete cost of the materials and labor needed to needed to build the project along with a fee for the contractor’s overhead and profit. This contract type is favored where the scope of work is highly uncertain or indeterminate and the type of labor, material, and equipment needed to build the project is also uncertain in nature.
6. Unit Price Contracts :-
Unit Price Contracts are based on anticipated quantities of items which are counted in the project in addition to their unit prices. The final price of the project depends upon the quantities required to carry out the work. Generally, these types of contracts are suitable only for construction and supplier projects which involve accurate identification of different types of items, but not their numbers, in the contract documents. These types of contracts are oftentimes used on excavation projects.
7. Time and Material Contracts :-
Time and Material Contracts are usually preferred if the project scope is not clear, or has not been defined. The owner and the contractor must establish an agreed hourly or daily rate, including additional expenses that could arise in the construction process. The costs must be classified as direct, indirect, mark-up, and overhead. Sometimes the owner might want to establish a cap or specific project duration to the contractor that must be met, in order to have the owner’s risk minimized.
8. Item rate contract :-
For this contract, contractors are required to quote rates for individual items of work on the basis of schedule of quantities furnished by the client’s department.
9. Percentage rate contract :-
In this form of contract, the client’s department draws up the schedule of items according to the description of items sanctioned in the estimate with quantities, rates, units and amounts shown therein.
10. Labour contract :-
This is a contract where the contractor quotes rates for the item work exclusive of the elements of materials which are supplied by the client’s Department.
11. Piece-Work agreement :-
This is that for which only a rate is agreed upon without reference to the total quantity of work to be done or the quantity of work to be done within a given period.
12.Target Contract :-
This is the type of contract where the contractor is paid on a cost-plus percentage work performed under this contract. In addition, he receives a percentage plus or minus on savings or excess effected against either a prior agreed estimate of total cost or a target value arrived at by measuring the work on completion and valuing at prior agreed rates.
» Lump Sum or Fixed Price Contract
» Measurement contract
» Turnkey Contract
» Design and BuildCost Plus Contracts
» Unit Price Contracts
» Time and Material ContractsItem rate contract
» Percentage rate contract
» Labour contract
» Piece-Work agreement
» Target Contract
1. Lump Sum or Fixed Price Contract :-
The contractor agrees to perform the work specified and described in the contract for a fixed price. The price of a fixed contract can only be changed upon the execution of a change order, under which the owner and the contractor either
2. Measurement contract :-
A measurement contract might also be appropriate on projects where the design has not been completed in sufficient detail for bills of quantities to be produced.It should be possible to describe the works in sufficient detail to determine a programme and to obtain rates from tenderers. Generally tenderers rates will be based on drawings and approximate quantities.
3. Turnkey Contract :-
A turnkey contract is a business arrangement in which a project is delivered in a completed state. Rather than contracting with an owner to develop a project in stages. The developer is hired to finish the entire project without owner input.
4. Design and Build :-
Design and Build procurement works on the basis that the main contractor is responsible for undertaking both the design and construction work on a project, for an agreed lump-sum price. Design and build projects can vary depending on the extent of the contractor’s design responsibility and how much initial design is included in the employer’s requirements.
5. Cost Plus Contracts :-
The Cost Plus Contract is a type of a construction contract under which the owner agrees to pay the complete cost of the materials and labor needed to needed to build the project along with a fee for the contractor’s overhead and profit. This contract type is favored where the scope of work is highly uncertain or indeterminate and the type of labor, material, and equipment needed to build the project is also uncertain in nature.
6. Unit Price Contracts :-
Unit Price Contracts are based on anticipated quantities of items which are counted in the project in addition to their unit prices. The final price of the project depends upon the quantities required to carry out the work. Generally, these types of contracts are suitable only for construction and supplier projects which involve accurate identification of different types of items, but not their numbers, in the contract documents. These types of contracts are oftentimes used on excavation projects.
7. Time and Material Contracts :-
Time and Material Contracts are usually preferred if the project scope is not clear, or has not been defined. The owner and the contractor must establish an agreed hourly or daily rate, including additional expenses that could arise in the construction process. The costs must be classified as direct, indirect, mark-up, and overhead. Sometimes the owner might want to establish a cap or specific project duration to the contractor that must be met, in order to have the owner’s risk minimized.
8. Item rate contract :-
For this contract, contractors are required to quote rates for individual items of work on the basis of schedule of quantities furnished by the client’s department.
9. Percentage rate contract :-
In this form of contract, the client’s department draws up the schedule of items according to the description of items sanctioned in the estimate with quantities, rates, units and amounts shown therein.
10. Labour contract :-
This is a contract where the contractor quotes rates for the item work exclusive of the elements of materials which are supplied by the client’s Department.
11. Piece-Work agreement :-
This is that for which only a rate is agreed upon without reference to the total quantity of work to be done or the quantity of work to be done within a given period.
12.Target Contract :-
This is the type of contract where the contractor is paid on a cost-plus percentage work performed under this contract. In addition, he receives a percentage plus or minus on savings or excess effected against either a prior agreed estimate of total cost or a target value arrived at by measuring the work on completion and valuing at prior agreed rates.