This form is a Construction Contract that may be executed with either a cost plus or fixed fee payment arrangement. The form contains the following additional subject matters and complies with the laws of the State of Florida: scope of work, work site, warranty and insurance.
Tallahassee Florida Construction Contract: Cost Plus or Fixed Fee When engaging in a construction project in Tallahassee, Florida, it is important to understand the different types of contracts available. Two common contract types you may encounter are Cost Plus and Fixed Fee contracts. These contracts establish the financial agreement between the owner and the contractor, outlining how the project will be priced and paid for. Here is a detailed description of each contract type: 1. Cost Plus Contract: A Cost Plus contract, also known as a Cost Reimbursement contract, is a pricing model where the owner agrees to compensate the contractor for the expenses incurred during the construction project, along with an additional fee or percentage for profit. Under this agreement, the owner covers the actual costs of labor, materials, and other direct project expenses. The contractor is then paid an agreed-upon markup percentage or flat fee on top of these costs as compensation for their services. Keywords: Tallahassee Florida construction contract, cost plus contract, cost reimbursement contract, pricing model, compensating expenses, labor, materials, direct project expenses, markup percentage, flat fee, compensation. 2. Fixed Fee Contract: In contrast to the Cost Plus contract, a Fixed Fee contract, also known as a Lump Sum contract, involves a predetermined and fixed amount to be paid to the contractor. The owner and contractor agree on a specific price for the entire construction project, considering all anticipated costs, including labor, materials, equipment, and overhead expenses. This fixed fee covers the completion of the project, regardless of any potential cost increases or savings encountered during construction. Keywords: Tallahassee Florida construction contract, fixed fee contract, lump sum contract, predetermined amount, specific price, entire construction project, anticipated costs, labor, materials, equipment, overhead expenses, cost increases, cost savings. While these two contract types differ in terms of financial structure, both provide advantages and disadvantages depending on the nature of the construction project. It is essential for owners and contractors to carefully consider their requirements and consult legal professionals to choose the most suitable contract type for their specific needs. Other Types of Construction Contracts in Tallahassee Florida: In addition to Cost Plus and Fixed Fee contracts, there are other construction contract types commonly used in Tallahassee, Florida. These may include Unit Price contracts, Time and Materials contracts, and Guaranteed Maximum Price contracts. Each contract type offers unique benefits and addresses different project requirements, providing flexibility in the negotiation and execution of construction projects. Keywords: Tallahassee Florida construction contract types, unit price contracts, time and materials contracts, guaranteed maximum price contracts, negotiation, execution, construction projects, unique benefits, project requirements. Understanding the different types of Tallahassee Florida Construction Contract Cost Plus or Fixed Fee is crucial for all parties involved in a construction project. Careful consideration should be given to the specific needs and requirements of the project to ensure the selection of the most suitable contract type, which complements the project goals while promoting transparency and mutual understanding between the owner and the contractor.
