Cost reimbursement contract is also known as the Cost-plus contracts. Unlike the fixed price contracts, quantities are not prefixed in the cost-reimbursable contracts. The contractor is valuing the project based on the Drawings & specs given by the consultants or client. The final value of the project will be agreed upon based on these documents.Continue reading “Cost reimbursement contract/Cost plus Contracts”
Variations in construction -under FIDIC 1999
Variations in Construction Variations are also called as change orders in construction. Any modification or change to works (agreed in the contract) is treated as a variation. These modifications or changes can divide into three main categories. Addition to the work agreed in the contract. Omission to work agreed in the contract. Substitution or alterationContinue reading “Variations in construction -under FIDIC 1999”
Best 5 ways to rescind an offer- revocation of offer
Rescind an offer or revocation of the offer, In any kind of relationship or business, in various situations, peoples are receiving and awarding offers. But after offering people might change their mind. So they might want to rescind an offer or revoke an offer. So let us explain to you how this can happen. BeforeContinue reading “Best 5 ways to rescind an offer- revocation of offer”
What is Life cycle costing
Life cycle costing-Explain with a simple example Whole life cycle costing (in construction) is the process of evaluating and estimating the total costs involved for building a project from the design stage to disposable stage. The building life cycle can divide into four key steps. Planing & Design stage Construction stage Operation stage (maintenance &Continue reading “What is Life cycle costing”
Construction cost calculation- Calculate unit price for Rate brake ups
Cost Estimation Construction cost calculation is not an easy task? Earlier estimators who worked in the industry estimated construction costs based on one assumptions. In those times subcontractng works are minimal. estimators estimates works only the company can carry out and complete a project with available resources( Labour, Material & plant). So at that time(earlierContinue reading “Construction cost calculation- Calculate unit price for Rate brake ups”
Choosing suitable FIDIC Contract?
What is FIDIC Contracts Choosing suitable FIDIC contract is very important for the smooth execution of a project. FIDIC Contracts are the leading documents used outside the UK. (for forming contacts in the construction industry). International Federation of Consulting Engineers or Fédération Internationale des Ingénieurs-Conseils draft and publish these FIDIC Contracts. Red book and theContinue reading “Choosing suitable FIDIC Contract?”
Construction risk assessment at tender stage
In construction, Risk assessments are a very important factor in each stage of a project. Before the construction at the tendering stage, the contractor should do a proper risk assessment. There are two kinds of risk in the construction process. First one is the risks which can quantify (quantifiable risks). And the other one, whichContinue reading “Construction risk assessment at tender stage”
Tendering process 1st step -decision to tender
The tendering process in construction-1st step Incorrect tendering and estimation process can lead a company into dangerous situations. Underestimation of a project can hurt owners and employees of the company at the construction stage. And overestimation can push the company out of the competition (tender rejections). Therefore any company should have a proper strategy orContinue reading “Tendering process 1st step -decision to tender”
Quick Guide to extension of time claims (EOT Claims)
Extension of time claims(EOT claims) are the most discussed type of claims in the construction industry, the Main intention of this article is to give you a better understanding of EOT claims. Before we move into further details on the extension of time claims we will look into the nature of the extension of timeContinue reading “Quick Guide to extension of time claims (EOT Claims)”
4 Key elements of Valid contract
A legally binding agreement between two or more parties is treated as a contract. As a Quantity Surveyor, it is essential to know the key elements to create a valid contract. There are four key elements to create a valid contract. before discussing the key elements of a valid contract, will see types of contracts, andContinue reading “4 Key elements of Valid contract”