Types of Contracts

Francis,
Check this site:
http://constructionenglish.net/types-construction-contracts/
http://constructionenglish.net/fidic-conditions-contract/

And also theres a lot of Website available... try to google it.

Dear Francis,

This depends on the type of Contract that you are using in your Country.

If you provide us with an idea about what you are using. We can provide you with more information.

We are using FIDIC Condition of Contract in this region for most project. If you need more info about FIDIC you can visit www.fidic.org and download the presentations that they have. They also have a very active and busy Calender, and I am sure that you will find something going on in your region.

With kind regards,

Samer

Hi francis

Check this out

http://www.ed.state.nh.us/education/doe/organization/programsupport/Building%20Aid/ConstructionContractsandDeliveryMethods1.htm

This will differentiate construction contracts and delivery methods

Dear Shahul,

Good source, thank you.

This is a headline summary
a. Lump Sum
b. Unit Price
c. Guaranteed Maximum Price
d. Cost Plus

Since the originator is using FIDIC, then he can refer to the seven books of FIDIC.

With kind rgards,

Samer

Thanks Samer and Basha,

I have come acsross T& M Contracts can anyone throw some light into it.

Cheers

Time and Material, basically same as Cost Plus.

Dear Francis,

These are used with subcontractors for Materials or Labor (hourly rates). For example, your Ready Mix supplier’s contract is a Material Contract. You Steel Supplier Contract is a Material Contract as well. Whereas, your Labor supplier is a Time Contract because they charge you per hour.

With kind regards,

Samer

Francis,

There are really only 3 types of basic contract but many variations on each theme: The type of contract is defined by its basic risk allocation structure, (little to do with how payment is evaluated):

1. Cost plus
2. Lump sum fixed price
3. Remeasurable

In their purest forms:

1. Cost plus:

Employer takes all the risk, contractor takes none.

2. Lump sum fixed price:

Contractor takes all the risk, Employer takes none.

3. Remeasurable:

Employer takes risks of quantities and pays contractor for actual quantity of work carried out. Contractor takes all other risks.

The many many variations are simply different apportionment of risk but all will originate from one or more of the above.

e.g, Target Cost is usually a Cost Plus mixed with Lump Sum Fixed price and therefore not Fixed Price anymore. Many apparently Lump Sum Fixed Price contracts are actually a mixture of Lump Sum Fixed Price and Remeasurable and therefore not Fixed Price anymore and so on and so on....