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Video Guide on Construction Service Contracts management

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Commonly Asked Questions about Construction Service Contracts

Here are four main construction contracts to choose from, plus their pros and cons: Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.
Service contract means a contract that directly engages the time and effort of a contractor whose primary purpose is to perform an identifiable task rather than to furnish an end item of supply. A service contract may be either a nonpersonal or personal contract.
Lastly, there are different legal and regulatory requirements for each type of contract. Construction contracts are subject to specific laws and regulations governing construction processes, safety, and permits. Service contracts, on the other hand, are subject to general business laws and regulations.
Most service contracts or extended service plans fall into one of six basic types: Date of Purchase Plans. These plans begin on the date the customer purchases the product and its extended warranty from the retailer. Extension Plans. Major Component Programs. Comprehensive Programs. Replacement Programs. Deductible Programs.
A service agreement is a legal document that outlines the terms and conditions of a specific service, while a contract is a more complex legal document that can cover a wider range of transactions. Services agreements are frequently less formal and might include a wide range of terms and conditions.
A construction company is one that undertakes projects under the fame of its name and expertise in the field of providing the perfect model to the required persons. A contractor may be a person or company which operates under these construction businesses to complete their desired projects.
3 Types of Construction Contracts: Their Pros and Cons for Owners and Contractors Fixed Price. The most common type of contract is the fixed price contract, also known as the lump sum or stipulated sum contract. Cost-Plus Fee. Unit Price.
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.