Fix fee in the Free Construction Contract

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Aug 6th, 2022
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How to fix fee in the Free Construction Contract

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the following BL TV program is brought to you by OFlaherty law please enjoy welcome to learn about law my name is kevin o Flaherty from OFlaherty law and today were going to talk about general contractor agreements in construction were going to go over some of the most important clauses in those agreements and some things that you should be aware of with respect to each of those clauses lets start with the scope of work clause the scope of work clause lays out exactly what the contractors agreeing to do what work theyre agreeing to perform the key to the scope of work clause is making sure its not ambiguous at all we want to be crystal clear on what the contractors agreeing to do for the price that theyre being paid this is especially important in lump sum contracts where theres a flat fee that the contractors charging for the work because if the scope of work isnt clear about what the contractor is supposed to do the there could be a dispute between the owner and the the c

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- Fixed Price Award Fee - A fixed-price contract provides for an award fee earned (if any) that will be paid in addition to the fixed price.
A fixed-price contract is typically used for simple projects with predictable costs. Under this agreement, the contractor and project owner agree to the scope of work required and set a price to complete a project. The contractors profit is built into the fee.
Examples of fixed costs are rent and lease costs, salaries, utility bills, insurance, and loan repayments. Some kinds of taxes, like business licenses, are also fixed costs. Since you have to pay fixed costs regardless of how much you sell, you should be careful about adding fixed costs to your small business.
Fixed costs include any number of expenses, including rental and lease payments, certain salaries, insurance, property taxes, interest expenses, depreciation, and some utilities.
Fixed Cost: Any Cost which is stable throughout the project life cycle and would not vary by quantity, time or any other project aspects called a fixed cost. For Example: In a software project, rent for the company space, software license cost, salaries, systems cost are preferred as a fixed cost.
Fixed costs, in the context of the construction industry, are the expenses that a contractor has to pay regardless of the level or volume of building activity.
A fixed fee is an arrangement in which you pay a set amount for a service or product, regardless of the length of time it takes to complete. This type of pricing typically applies to services like consulting, legal work, and website design, where the provider does not charge for materials or labor.

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