Our Contract
Information

Construction contract types are usually defined by the way, the disbursement is going to be
made and details other specific terms, like duration, quality, specifications, and several other
items. These major contract types can have many variations and can be customized to meet
the specific needs of the product or the project.

01

Lump Sum

  • It is called a lump-sum because the contractor is required to submit a total and global price instead of bidding on individual
  • Low risk to the owner
  • 'Fixed' construction cost
  • Minimize change orders
  • Owner supervision is reduced
  • Complete the project faster
  • Widely method accepted
  • Bidding analysis is relatively easy
  • Maximize production
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02

Cost Plus

  • Involves payment of the actual costs, purchases or other expenses generated directly from the construction activity.
  • Fixed Percentage
  • Fully fixed fees
  • Fixed rate for all labor
  • Increase contractor efficiency
  • Projects can be fast-tracked
  • Sharing cost savings
  • Most efficient
  • Low risk involves
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03

T & M

  • Time and materials (T&M) contracts involve both parties agreeing on predetermined unit rates for labor and materials.
  • Reduced billable per-hour rates
  • Lower internal cost structure
  • Fixed rate for all labor
  • Increase contractor efficiency
  • Price is limited to the cap
  • Imply not-to-exceed condition
  • Prevent lower efficiency
  • Saves more money
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/ 4 Steps

Contracts Management

The list below covers some of the basic 4 steps found in construction contracts, as well as some of the factors that need to be considered and written into the contract when appropriate.

Choose Your Contract Types

Construction contract types are usually defined by the manner in which the disbursement is going to be made; they also specify other terms, such as duration, quality, specifications, and other issues of similar importance.

Step 1

Step 2

Successful Negotiations

A negotiator should have the characteristics and skills that allow for the right deal to be struck while achieving set goals. Certain tricks and methods can ensure everyone receives a good deal.

Hire Subcontractor

Based on the scope of the project and existing relationships with subcontractors, the project manager will make the decision based on what is most cost-effective and timely.

Step 3

Step 4

Contract
Agreements

Usually, the contract agreement is executed between the owner of the project and the contractor (or supplier) that is providing the requested service. It contains several sections of clauses defining the scope, terms, and conditions.

/ Fees

Common General Fees

This list includes descriptions of some of the most common items you can include in your construction costs. Usually, they are different from overhead and profit, although sometimes supervision can be included.
Pre-Development Fee :3%
You spent time and effort putting a preliminary estimate, proposal, and planning before being awarded, and those hours and costs should be recovered.
Utilities :6%
Your site office needs power, washrooms, and all utilities—including internet and phone lines—in order to do an efficient job.
Office Trailers:8%
Costs related to the office space include parking space, entry access, office equipment rental, computer and software licenses, office supplies, temporary fences, printers etc.
Vehicles:4%
Your site office needs power, washrooms, and all utilities—including internet and phone lines—in order to do an efficient job.
Lay-Down Yard:2%
You may be required to prepare a staging area or lay-down yard to receive all material required for the build.
Dumpsters :06%
You spent time and effort putting a preliminary estimate, proposal, and planning before being awarded, and those hours and costs should be recovered.
Stormwater Pollution Prevention Plan (SWPP) :04%
Your site office needs power, washrooms, and all utilities—including internet and phone lines—in order to do an efficient job.
Mobilization and Demobilization :02%
Costs related to the office space include parking space, entry access, office equipment rental, computer and software licenses, office supplies, temporary fences, printers etc.
Drinking Wate :01%
Your site office needs power, washrooms, and all utilities—including internet and phone lines—in order to do an efficient job.
Clean Up:1%
You may be required to prepare a staging area or lay-down yard to receive all material required for the build.
# Conceptual estimates are preliminary estimates ranging between 30% and 50% accurate and sometimes are developed doing parametric estimating or using a model.
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