Differ between the unit price contract and contract price?

Q: As the owner of the project MDS, you had defined the contractual relationshipsI parties involved in…

A: As an owner of the project, if you had defined a contractual relationship between the parties, which…

Q: The significant feature of ‘unit price contract’ is that the price per unit. Although quantities may…

A: In a unit price contract, the contractor is relieved of the risk of estimating uncertain quantities…

Q: Provide a technical justification for the following: i. Formula for price adjustment (escalation)…

A: Price adjustments on account of increases or decreases in the costs of products and services in…

Q: Differentiate between two major tendering processes in term of (identification, advantages and…

A: Two major tendering process are as follows :-  Selective Tendering  Open Tendering

Q: What are the side effects of change orders on the  the contractor's cost?

A: The nature of construction projects is complex and unpredictable, where lots of factors and…

Q: What are unit price contracts?

A:

Q: Give the guidelines in case you suspect the existence of a serious imbalance in the lowest bidder's…

A: Guidelines in case you suspect the existence of a serious imbalance in the lowest bidder's…

Q: When are the unit price contracts used?

A: Introduction to Unit price contract Unit Price method is the kind of contract in which total cost of…

Q: What standard forms of contract are offered by JCT?

A: The Joint Contract Tribunal's (JCT) standard forms of contract are created for difficult or big…

Q: What is the cost Reimbursable contract?

A: A constructional contract is defined as an agreement between two parties in which general and…

Q: Discuss the importance of boilerplate contract terms and conditions as part of the contract. How do…

A: Boilerplate clauses, also known as common, general, and miscellaneous clauses, are provisions that…

Q: Why is cost plus a percentage of cost type of contract notused to a great extent?

A: A cost-plus contract is an agreement to a company for the expenses that acquired a specific amount…

Q: What is a payless notice?

A: Pay Less Notice is defined as the notice which is written in order to notify the Payee from the…

Q: Explain how an estimate is priced in two phases

A: Introduction: Estimated pricing is defined as an approximation of the project's cost. The…

Q: What are the general conditions of a contract?

A:

Q: What are the performance bonds?

A: Performance bond:

Q: What are the benefits of the forwarding the pricing change orders?

A: Forward pricing is defined as the estimated work cost which is yet to be carried out.

Q: What are the Loss and Expense heads of claim?

A: The loss and expense is a claim in the construction contracts which is presented by the contractor…

Q: What is Bidder Prequalification?

A: Bidder Prequalification:

Q: How is the allocation of indirect costs usually done?

A: Let's first understand what is indirect cost: Indirect prices area unit those that can't be fully…

Q: Describe how computers can help with the first stage in pricing an estimate.

A: Computers are one of the most useful tool in the sorting and listing phase, and even the recap phase…

Q: What is the fixed-price incentive contract?

A: Fixed price incentive contract is a contract in which a fixed percentage on the total target cost or…

Q: Why does the contractor not want to make a commitment to unit -price amounts?

A: In Unit price amount contract, it is a commitment by the contractor to fix the rates of each and…

Q: What are the advantages of Bid Bonds?

A: A bid bond would guarantee the bond owner compensation if the bidder fails to start a project.

Q: What is the importance of the performance and payment bonds?

A: A performance bond is carried out ensuring the contractor completes the work in compliance with the…

Q: Explain difference between “Escalation and Liquidated Damages”. Write how site conditions affecting…

A: Escalation Damages:- Damages from escalation are typically calculated by comparing the cost of…

Q: Tendering process - Differentiate between two major tendering processes in term of (identification,…

A: Two major types of tendering process are as follows :-  Open Tendering Selective Tendering

Q: What is the derivation of the costing of a new item of work not included in the original contract?

A: When there is a new item which is not included in the original contract then the following steps are…

Q: What would be the result of failure to agree on change order pricing?

A: A change order is a work that has been removed or attached to the original contract of work, but…

Q: In a construction contract, which is the best party to bear the various risks?

A: In a construction contract there are various risks, some are given below: Logistical risks Socio…

Q: on the typical project, there are usually how manyprime contracts with the owner?

A: There are generally two prime contracts occur with the owner in a typical project.

Q: What are Bid Bonds?

A: A big bond is one of a type of construction bond, which is a guarantee by the bidder or contractor…

Q: How much of an impact does a formal schedule have on the subcontractor's ability to make a profit?

A: A construction schedule is a timetable for each activity and event in a building project. The…

Q: Must a contractor accept and perform all the work involvedin each contract change order? Is there a…

A: Contractor accept and perform all the work involved in each contract change order; A contractor,…

Q: What are some of the examples of fixed-price incentive contracts?

A: Fixed-price incentive contracts are fixed-price contracts but with the incentive given for finish…

Q: What type of bond guarantees that if a contractor goesbankrupt on a project the surety will pay the…

A: Payment bond guarantees that if a contractor goes bankrupt on a project the surety will pay the…

Q: What are the disadvantages of the written contracts?

A: Written contract: A written contract could be a written agreement between 2 parties, one a borrower…

Q: How are the field cost indexes derived?

A: Field Cost indices in construction : Most of the information used to compile construction price…

Q: How can the unit price projects be created?

A: The job to ever be done is divided into separate sections of a unit price arrangement, typically…

Q: What is the purpose of the notice to bidders?

A: Purpose of the notice to bidders:

Q: What are Guaranteed Maximum Price Contracts?

A:

Q: What is the Partnering Concept?

A: Concept: The type of business partnering used in engineering, architecture, and the construction…

Q: What are the examples of unit price contracts?

A: The estimated quantities of items and unit prices on the hourly rates, rate per unit work volume…

Types of Contracts

A verbal or written agreement between a person and a firm, for undertaking construction, material supply, maintenance, and repair work which is enforceable by law is termed as a contract. The person who undertakes the contract for execution of the work is termed as a contractor. The contracts are classified into different types depending on the nature of the contract.