Easily Insert Option Choice in the Construction Contract

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How to Insert Option Choice in the Construction Contract

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the NEC 3 has got multiple main options that can be selected but why is it got more than one option and why would it be appropriate to choose one of the options over another one in this video Im gonna go through each of the main options Im gonna explain to you how they work and why you might want to choose one of the options instead of another a construct Academy were passionate about education and the construction industry so if youre visiting us for the first time today please consider subscribing if youd like to know more about the NEC 3 and other construction related topics and if you do subscribe please remember to hit the bell so when we release our videos you get that alert now lets get into it now option a is a price contract with an activity schedule now this is the option that the employer would choose if they want to lump some contract now a lump sum is not the same as a guaranteed maximum price the lump sum is provided by the contractor is based on the works informati

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What does FAR 52.217-8 mean?

FAR 52.217-8 allows the government to extend services without negotiating short extensions to existing contracts in circumstances, such as those here, where the award of a successor contract is delayed.

What is a dash 8 clause?

The clause states: The Government may require continued performance of any services within the limits and at the rates specified in the contract.

What is the far clause to exercise an option?

The clause at FAR 52.217-9 addresses exercising an option that is within the scope (including the period of performance) of the contract. It gives the Government the right to unilaterally exercise one or more options.

What is the purpose of FAR 52.217-8?

FAR 52.217-8 allows the government to extend services without negotiating short extensions to existing contracts in circumstances, such as those here, where the award of a successor contract is delayed.

What is the difference between FAR 52.217-8 and 52.217-9?

FAR Subpart 17.2 prescribes two primary clauses for service contracts: (1) 52.217-8 for short term extensions up to six months, typically used for situations outside the contracting offices control when a new contract cannot be awarded on time, and (2) 52.217-9, which normally results in one or more annual options.

What are the 4 types of contracts?

4 Types of Construction Contracts Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.

What are the options on construction contracts?

The five main types of construction contracts are lump sum, time and materials, cost-plus, unit price, and guaranteed maximum price (GMP). Because there are so many different types of construction projects, each type of construction contract exists to satisfy the varying needs of all parties involved.

Is 52.217-8 unilateral or bilateral?

Answer. Question 1) your understanding is correct, FAR 52.217-8 gives the contracting officer the unilateral right to exercise the option as long as you are still within the notification period identified in the last sentence.

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