Easily Hide Payment Field from the General Contractor Agreement

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How to Hide Payment Field from the General Contractor Agreement

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joe just answer i just asked another question here while learning how to price a job did you under bid and realize it should have cost more for the job yes and i i think weve all gone through that you know everybody thats been in in construction uh there yeah theres definitely times where i under bid a job and i learned from that so now the way that i have it set up um you know over time you learn all this and if you have a good contract in place that can protect you and your customer then then thats thats where a lot of the times you know theres jobs we take on where theres an unforeseen circumstance you know and a lot of the new guys dont know like oh you know its gonna cost us more but i dont have this in my contract so the customers not wanting to spend more and they try to take advantage of of contractors as well sometimes so you know if its an unforeseen circumstance you should have that in your contract where you know if something shows up or theres rot or something

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Got questions?

Below are some common questions from our customers that may provide you with the answer you're looking for. If you can't find an answer to your question, please don't hesitate to reach out to us.

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Which pricing contract has highest risk for the client?

Performing a project under a fixed-price contract is more risky than other projects. For example, the cost of such a project, agreed to with the buyer, typically is not subject to any adjustments based on the sellers subsequent costs incurred in performing the work.

How do I document cash payments to contractors?

If you end up paying the contractor with cash, ensure you get a receipt and have a W9 on file. Due to mentioned risks, we highly encourage you to make all payments in forms other than cash.

Which method of payment places the most cost risk on the general contractor?

Lump Sum Contracts This type of commercial construction contract places almost all of the risk on the contractor as they are the ones who will estimate costs from the plans and factor in additional overhead and profit to determine the total value.

What is considered to be a bdocHub of contract in construction?

If one or all parties in a contract fail to perform what is expected of them for no justifiable reason, a bdocHub of contract has occurred. In a construction contract, a bdocHub may occur due to several reasons including; The contractor fails to complete the job described in the contract on time or at all.

What does a contractor use the cost to cost method in determining?

The cost to cost method is used by project accountants to determine the percentage of completion of a project, and therefore the amount of revenue that can be recognized.

What type of payment is most commonly used with construction contracts?

Fixed Price, or Lump Sum Perhaps the simplest and most commonly used payment mechanism is the fixed-price, or lump-sum, contract. Under this method, the contractor proposes the price to the party seeking the work (likely an owner or tenant) after estimating its costs and adding a profit margin.

Who accepts the greatest risk under cost reimbursement contract?

In a fixed-price contract, the projects total cost is agreed upon before work begins, and that price is set in stone. This means that most of the risk lies with the contractor, while in a cost-reimbursement contract, most of the risk lies with the project owner.

What is the payment clause in a construction contract?

A payment clause that obligates the Contractor to pay the subcontractor for satisfactory performance under its subcontract not later than 7 days from receipt of payment out of such amounts as are paid to the Contractor under this contract.

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