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Video Guide on Business Contracts for Construction management

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Commonly Asked Questions about Business Contracts for Construction

Lump sum contracts Lump sum contracts work especially well for projects with a well-defined scope of work, which enables contractors to make an accurate estimate of the projects cost.
Among the types of construction contracts mentioned above, the unit price, lump sum, fixed price, time and materials, and cost-plus contracts fall under the category of commercial contracts. An agreement between contractors and business owners is referred to as a commercial construction contract.
Lump sum contracts (also sometimes known as fixed price contracts) are usually considered the most popular type of contract when it comes to building and engineering agreements, however they do have minor differences.
A lump-sum contract (also called a fixed price contract) names a total price for the entire job. This price accounts for all time and materials regardless of changes or issues. This type of contract protects owners against unforeseen changes and setbacks.
A turnkey contract ensures that all the responsibilities during the construction lies with the contractor, which saves a lot of time for the homeowner.
To that end, before you sign anything and start working, make sure your contract has these 5 key elements. A Detailed Scope of Work. Project Cost and Payment Schedule. Construction Timeline. Change Order Process. Project Issues and Dispute Resolution.
The most common type of contract is the fixed price contract, also known as the lump sum or stipulated sum contract. Fixed price contracts carry more risk to contractors than owners.
What is the most commonly used construction contract? Lump sum contracts (also sometimes known as fixed price contracts) are usually considered the most popular type of contract when it comes to building and engineering agreements, however they do have minor differences.