Agreements can take countless forms.
An example might be a verbal communication like I’ll pay you $100 dollars to replace my faucet.
When your construction needs move from informal communications, handshakes, or emails to a written document you’ll want some knowledge to make the best decision for your project.
Specific terms and conditions can take a contract in many different directions.
It’s important to select the agreement that will maximize its performance, preparedness, organization, and compliance for your project.
Terms and Conditions
The contract will include terms and conditions such as general provisions, duties, obligations and responsibilities, extra work, contract time, warranty, termination, dispute resolution, protection of work, and possibly miscellaneous clauses.
The contract should clearly identify such items as:
|Owner of the Project / Client||Substantial Completion Date|
|Scope of Work||Plans and Specification|
Some of the contract types we frequently use include:
- Fixed-Price/Lump Sum: This agreement is when an estimated total is provided and requires more more estimating time. It is more commonly used.
- Cost-Plus: This occurs when the buyer agrees to pay the actual cost of the entire project plus a fee that covers the GC’s profits and overhead. Typically, the buyer is able to see the list of expenses, so they know what they’re paying for.
- Guaranteed Maximum Price (GMP)/Not to Exceed (NTE): This agreement reflects a maximum amount agreed upon for a specific Scope of Work.
- Time and Materials: These contracts are used when it’s not possible to estimate the project and the contractor is paid for the time spent to complete the project and for the materials used in the process.
- AIA Agreements: The American Institute of Architects (AIA) offers standardized templated contracts.
We offer experience with the AIA-101, 104, 105, and 141 which are agreements between the Owner and Contractor or Owner and Design-Builder.
An AIA-201 may be used for the general conditions.
If requested, we’ll provide an AIA-305 Contractor’s Qualification Statement. Clients and GCs may need to address unforeseen situations or change or changes during construction. These situations are resolved through a written Change Order (CO). The CO should include a scope of work, costs, and schedule impact. Once approved by both parties, the CO becomes integrate with the original contract.
Selecting the correct contract is just as important as selecting the right General Contractor. We have the construction and contracting experience to be your General Contractor.