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”
Tag Archives: Lump sum contracts
Why Remeasurement(Re measurable) contracts / Unit price contracts
The re-measurable/remeasurement contract is the most popular type of contract used in the former construction industry. But even so, large construction companies are using this method to hire subcontractors for tasks such as painting, plastering, etc. In this method, the companies will receive the payment based on actual work. Compared to other procurement methods, theContinue reading “Why Remeasurement(Re measurable) contracts / Unit price contracts”
Procurement methods in Construction/ types of contracts
What is procurement means to the construction industry? Meaning of Procurement in everyday language is the action of acquiring or obtaining process of any kind of service or commodity. When its come to the construction industry acquiring or obtaining strategy is a time-consuming and costly process. Therefor different type of contract processes are there asContinue reading “Procurement methods in Construction/ types of contracts”
5 pros & cons of Lumpsum Contracts or Fixed price Contracts (with video explain)
What is a Lump sum contract or Fixed price contract Lump sum contracts are the most favourite contract (procurement) type used in the construction industry. Also known as fixed-price contracts. Because in these contracts, the contract price is fixed and agreed at the initial stage. In industry, this contract type is recognizing as one ofContinue reading “5 pros & cons of Lumpsum Contracts or Fixed price Contracts (with video explain)”
Lump sum or Fixed price Contracts
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