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WorksheetsTYPES OF CONTRACT IN CONSTRUCTION MANAGEMENT
Total questions: 12
Worksheet time: 11mins
What is Construction contract ?
An exchange of promises between two or more parties to do, or refrain from doing an act, which resulting contract is enforceable in a court of law.
A legal agreement document between two parties (client (Owner) & Contractor) that binds the contractor to do the job with the specified requirements and the client to pay for it.
Exchange of money in return for construction material and building services.
Buying from external organizations and 3rd parties to start construction project
Which types of Contracts not used in Construction
Design Build
Unit price Contracts
Lump-sum Contract
Express and Implied Contracts
The total cost of work in Unit Price Contract can be calculated
After the sign the contract
Before the sign the contract
After the completion of the work
Before the completion of the work
Advantages of Unit price Contracts
Tenderers prices are on exactly the same basis
Owner does know the exact cost of the work.
Avoid a lot of detailed accounting & measurement.
Project scope and limits are defined prior to the start of construction.
Which is not of disadvantages of Lump-sum Contract
Plans & specifications must be every detail.
Highly skilled Architect or Engineer is needed.
The lack of time flexibility in this method may result in delayed project implementation.
Plans & specifications do not need to be completed in detail
Total cost of Cost Plus fixed fee Contract (CPFF)
Total cost = Cost for the work X Fixed Fee
Total cost = Cost for the work + Fixed Fee
Total cost = Cost for the work + Percentage of cost
Total cost = Cost for the work X Percentage
In Cost plus incentive fee (CPIF) Contract, the compensation is based on contracting performance according to
Budget
Schedule
Quality
Budget, schedule and quality
Advantage of Cost Plus Contract
They allow the focus to shift from the overall cost to the on the quality of work being done.
They may leave the final cost up in the air since they can't be predetermined.
They may lead to a longer timeline for the project.
The all risk on the contractor.
Which sentence is true about Guaranteed Maximum Price (GMP) Contract
The contractor agrees to perform work up a price ceiling.
The contractor agrees to perform work within a price ceiling.
This method gives greater flexibility for the contractor.
All sentence not true
In the Negotiated Contract The owner can negotiating with the contract including method of payment for the work, Bid, etc.
True
False
In Design-Build Contracts is a method to deliver a project in which the design and construction services by the owner.
True
False
Turn-key Contracts is a type of project that is constructed so that it could be sold to any buyer as a completed product
True
False
