Agreement Civil Contractor

This type of construction contract is an alternative to fixed-price contracts. It allows flexibility and transparency for the owner and reduces the risk for a contractor, because a Cost Plus construction contract guarantees them a profit. Construction delays can be protected by the contracting authorities with a lump sum compensation clause in their agreement. Lump sum damages are a fixed amount per day that the contractor pays to the owner for each day of delay in construction. Instead of negotiating damages in court, owners and contractors can agree in advance on a lump sum of damages. This type of agreement defines very well the purpose and scope of the agreement. In this alternative, the provisions and conditions of the treaty are clearly understood by each party. 18. The owner, while retaining ownership of the land, allowed the contractor to enter the land only for the purpose of constructing a building. Thereafter, the owner has the right to freely enter and exercise any deed of ownership and ownership through the aforementioned residential land.

Before signing a construction contract between the owner and the contractor, it should be ensured that all goods are properly covered in order to ensure sufficient legal protection. This agreement allows the parties to record in writing the exact nature and details of the work to be performed as well as the responsibilities of each of the parties throughout the construction. In addition, the terms of payment for the project will also be detailed. Generally speaking, there are three different types of price agreements: the difference between this type of contract, which is a contract based on fixed costs, is that, in the maximum guaranteed price (GMP), where savings result from the costs of the duration, it would be an agreed price contract, and the contractors keep for themselves the savings on sub-costs and there is no obligation for e, return them. to the owners. Nevertheless, this savings can be shared by both the contractor and the owner. [12] There is another difference in the status of the plans. The fixed-price contract can be used if the owner has a complete set of construction plans, specifications, etc., otherwise the maximum guaranteed price (GMP) will be taken into account preferably to compensate for this defect. . .