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The three most common contract types include:Fixed-price contracts.Cost-plus contracts.Time and materials 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.).
Time and materials contracts As opposed to lump sum contracts, time and materials (T&M) contracts work best for projects in which the scope of work is not well-defined. Time and materials contracts reimburse contractors for the cost of materials and establish an hourly or daily pay rate.
Design Contract means any contract or agreement relating to the architecture, design, engineering or planning of a Project or portion thereof.
In Design/Bid/Build, also known as the general contracting project delivery method, the process is linear, where one phase is completed before another phase is begun with no overlap. This is the traditional method of project delivery and has been the most widely used construction delivery method since ancient times.
The University of California uses a University Controlled Insurance Program (UCIP) for construction projects with a projected construction value of $25,000,000 and over (total for all phases).
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.
Designbuild (or design/build, and abbreviated DB or D/B accordingly) is a project delivery system used in the construction industry. It is a method to deliver a project in which the design and construction services are contracted by a single entity known as the designbuilder or designbuild contractor.
(2) Progressive design-build means a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project.
Use of the Design-Build family of AIA Contract Documents is appropriate when the project delivery method is design-build. In design-build project delivery, the owner enters into a contract with a design-builder who is obligated to design and construct the project.