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The construction contract price includes the direct project cost including field supervision expenses plus the markup imposed by contractors for general overhead expenses and profit. The factors influencing a facility price will vary by type of facility and location as well.
Examples of a fixed-price contract The purchase of inventory or office supplies for a specific price. The purchase of a vehicle or contract for vehicle repairs. Hiring an advertising agency to create a logo for a set price. Paying a company $4,000 to design a website.
Examples of Contract Costing A bridge is needed over a river at a particular site, and a client gives a contractor this assignment. A contractor opens separate accounts for each contract and numbers them separately to identify any profit or loss made at each contract.
Elements of a construction contract Name of contractor and contact information. ... Name of homeowner and contact information. ... Describe property in legal terms. ... List attachments to the contract. ... The cost. ... Failure of homeowner to obtain financing. ... Description of the work and the completion date. ... Right to stop the project.
There are five common types of construction contracts: lump sum (or fixed price), time and materials (T&M), unit price, guaranteed maximum price (GMP), and cost-plus.