What Is a Priced Contract Specification

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The Contractor must take into account all restrictions and the order of work collected under the “Preliminary” and “Equipment and Manufacture” clauses. A work plan is a contractual document that lists the work required for a project. The schedule refers to the requirements contained in the specifications and drawings of the contract, as well as any additional elements such as “construction work” or “repair plan”, commonly referred to as the specified work plan. Contractors can create bills of lading themselves to more accurately calculate the prices of the work before converting these price quantities back into the item format of the route. In such cases, the risk of quantification errors rests solely with the contractor. In the event of an error, there is always an obligation to “perform and complete the work in accordance with the contractual documents”, as specified in Articles 1 and 2 of the SBC JCT. This contract is used when the risk needs to be transferred to the builder and the owner wants to avoid change orders for unspecified work. However, a contractor must also disclose certain percentages of costs associated with bearing this risk. These costs are hidden in the fixed price. With a lump sum contract, it`s harder to get credit for unfinished work, so keep that in mind when analyzing your options. The work schedule of the tender phase provides that tenderers include the necessary work on the basis of the listed descriptions and by reference to drawings and specifications in order to create a return on tender.

The contractor`s quantity surveyor will usually produce its own take-off, which it will set before converting this price back into the work schedule. A work schedule can be used to determine the value of work completed so far and work in progress. This type of contract management is usually performed by an architect, construction appraiser or quantity surveyor. Specifications must be developed along with the design, with the level of detail increasing as the design progresses. They should only be left behind when creating production information. In the call for tenders, they must describe each aspect of the building in such a way that there is no uncertainty as to what the contractor is evaluating. The types of construction contracts are usually defined by the type of payment made and other specific conditions such as duration, quality, specifications and certain other elements are indicated. These main types of contracts can have many variations and can be tailored to the specific requirements of the product or project. While prescriptive specifications are written for more complex buildings. For more information, see: Prescriptive specifications. This type of contract involves the payment of actual costs, purchases or other expenses incurred directly from the construction activity. Cost Plus contracts must contain specific information about a certain pre-negotiated amount (a certain percentage of material and labor costs) that covers the contractor`s overhead and profits.

Costs should be detailed and classified into direct or indirect costs. There are several variants of Cost Plus contracts and the most common are: A logical format for the work plan is to reflect the step-by-step planning of the construction work, that is, the list of elements is organized under headings such as mobilization, then evacuation, then foundations, walls, etc. Developing work in this format is not only useful for measuring progress, but also for bidders to convince themselves that all work is priced, and once they have started construction, it will also help contractors plan the resources they need, when they need them and for how long. This is a document created to provide project participants with a thorough assessment of the work involved, so that the production team on the construction site can sort its main component and decide how, in what order and when to complete it, and to ensure proper coordination of the requirements of the work, materials and machines (Bamisile, 2004). After the first phase above and after the decision of a successful bidder, the work plan is linked in and forms part of the final contractual documents between the parties. Below is a description of each of these types of specifications, as well as a discussion of their relative advantages and disadvantages, the project conditions under which they can best be implemented, and the general information they should convey. Commissioned drawings include architectural drawings, structural/geotechnical drawings and technical drawings of the building. These drawings provide information on the layout of parts, components, electrical, mechanical and sanitary installations, etc. However, from the employer`s point of view, once they have prepared the invoices, they could be responsible for errors and omissions, which is why using a work plan could be more beneficial. When a worktop is used, it is assumed that the contractor is included for all work listed in the specifications, drawings and other referenced documents.

Time and material contracts are generally preferred if the scope of the project is unclear or has not been defined. The owner and contractor must set an agreed hourly or daily rate, including any additional costs that may arise in the construction process. A work plan can have different uses at the stages of project development. For example, it will be included in the call for tenders so that bidders can evaluate the work, and for the successful bidder, it will then be part of the contract. The timetable can be transformed into a work programme or form the basis for it. .