North Carolina Service Contract for Development and Design
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How to fill out Service Contract For Development And Design?
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FAQ
The owner benefits by paying only the actual reimburs- able costs and knowing that the project won't exceed an ultimate price ceiling. The contract includes a fixed fee. The contract also includes an incentive provision for sharing some or all cost savings to control costs within the price ceiling.
Therefore, a "design and build" contract, in the absence of any terms to the contrary, necessarily incorporates a lump sum contract and is a subset of lump sum contracts.
The successful proposer is selected based on a number of factors including past experience, ability to innovate, cost, and any other specific factor the Owner chooses (e.g. the number of local sub-contractors used, the environmental approach, etc.).
The design-build process can be broken down into five main steps: team selection, project planning, design, GMP/bidding, and construction. For the most part, these steps will happen sequentially, but not necessarily independent of one another. The project planning, design, and bidding phases may overlap.
Design-build is a project delivery method in which the owner contracts directly with one entity to provide both the design and construction of the project. It is important to recognize that a design-builder assumes responsibility and liability for both the design services and construction work.
What Should Be in a Construction Contract?Identifying/Contact Information.Title and Description of the Project.Projected Timeline and Completion Date.Cost Estimate and Payment Schedule.Stop-Work Clause and Stop-Payment Clause.Act of God Clause.Change Order Agreement.Warranty.More items...
Design and build is a term describing a procurement route in which the main contractor is appointed to design and construct the works, as opposed to a traditional contract, where the client appoints consultants to design the development and then a contractor is appointed to construct the works.
Contract clauses can also seek to shift design responsibility through provisions that provide that, in the event of conflicts, ambiguities, or discrepancies among or between various contract documents, the most stringent, most exacting, most expensive, or otherwise most onerous requirement will prevail.
A lump sum contract, also known as a stipulated sum contract, is a construction agreement in which the contractor agrees to complete the project for a predetermined, set price. Under a lump sum agreement, the contractor submits a total project price instead of bidding on each individual item.
Design responsibility in a building contract will rest with either the principal or the contractor. In the traditional form of building contract, the principal will engage professional designers (ie architects and engineers) to carry out the design work specified in the building contract.