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How to Alter Sum Contract For Free

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good morning and welcome to this webinar brought to you by the edmonton construction association on the new ccdc 2 standard stipulated price contract form known as ccdc2 2020. my name is michael atkinson im the immediate past president of the canadian construction association a position i held for some 23 years im a lawyer and a former secretary of the canadian construction documents committee from 1983 to 1993 and contrary to the rumor you may have heard the documents were not on stone tablets at that time but uh yes i was around when the the current version of two really took it first shape back in 19 in the early 1980s and i think its important to remember well first of all if questions uh you could submit them by the chat option or the q a option a tailor is going to be monitoring them and after my presentation thats when ill take up the questions i hope to go about 45 minutes and hopefully itll be more than enough time for for your questions i think its important to rememb

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Which circumstances would mandate the use of a lump sum contract?

When to Use This Type of Contract. A lump-sum contract is a great contract agreement to be used if the requested work is well-defined and construction drawings are completed. The lump-sum agreement will reduce owner risk, and the contractor has greater control over profit expectations.

What is disadvantage of lump sum contracts?

Disadvantages for project owners If a change is needed, lump sum contracts stipulate the use of a formal change order process and a considerable amount of paperwork. There is also the risk of being charged a higher amount to cover the contractor costs for unforeseen situations.

How can I get free documents?

The provides free PDF copies of its document commentaries, comparisons, and guides to supplementary conditions, as well as the G612, Owners Instructions to the Architect. docHub Reader is required to view PDF files and is available for download free of charge.

What does lump sum mean in a contract?

A lump sum contract, also known as a stipulated sum contract, is a construction agreement in which the contractor agrees to complete the project for a predetermined, set price. Under a lump sum agreement, the contractor submits a total project price instead of bidding on each individual item.

Who has the greatest risk in a lump sum contract?

#1: Increased Risk for Contractors If unexpected setbacks occur, builders and contractors may end up making less money or even losing money because owners are not required to pay for costs above the agreed-upon price.

What are the disadvantages of lump sum?

Disadvantages of a Lump Sum Construction Contract A lump sum agreement presents a higher risk to a contractor. Measuring the number of changes is difficult. Such contracts require paperwork and records of change orders from each phase, and this means further documentation is needed.

What are the characteristics of a lump sum contract?

A lump sum contract is an agreement pursuant to which one party consents to pay another party a set amount of money for completing the work or providing the goods described in the agreement. Typically, lump sum contracts do not require contractors to provide a detailed breakdown of costs.

Where can I buy documents?

Anyone may purchase Contract Documents license or a single document, it is not necessary to be an member. Purchase online on our website or call 800-942-7732 to speak with a Customer Service Representative.

What is lump sum used for?

Lump sum payment refers to a one-time large payment of money given to an employee, usually instead of a series of payments made over time. Lump sum payment has a lower value when provided to pay for an asset or service because the sum total of the funds is being paid upfront.

Which type of contract places the most amount of risk on a contractor?

A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractors cost experience in performing the contract. This contract type places upon the contractor maximum risk and full responsibility for all costs and resulting profit or loss.

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