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 North Dakota: scope of work, work site, warranty and insurance.
Fargo, North Dakota Construction Contract Cost Plus or Fixed Fee refers to different payment models used in construction contracts in the city of Fargo, North Dakota. These models outline the terms and conditions related to how contractors are compensated for their services. Cost Plus Construction Contracts in Fargo, North Dakota: 1. Cost Plus Percentage Fee: In this type of contract, the contractor is reimbursed for the total cost of construction as well as an additional percentage amount that covers their profit margin and overhead expenses. The contractor invoices the client for the actual costs incurred, with the percentage fee added on top. 2. Cost Plus Fixed Fee: This contract model works similarly to the percentage fee, but instead of a percentage, a fixed fee is agreed upon between the client and contractor. The fixed fee covers the contractor's profit and overhead costs, and the actual construction costs are reimbursed separately. Fixed Fee Construction Contracts in Fargo, North Dakota: 1. Lump Sum Fixed Fee: Under this type of contract, the contractor agrees to complete the specified construction project for a predetermined, fixed amount. The contractor bears the risk of any cost overruns or project delays. 2. Unit Price Fixed Fee: In this contract, the contractor provides a fixed price for specific units of work, such as per square foot, per cubic yard, or per item installed. The final fee is then calculated based on the quantity of work completed. Regardless of the payment model used, Fargo, North Dakota Construction Contracts Cost Plus or Fixed Fee should include detailed information about the scope of work, project schedules, change order procedures, payment terms, warranty provisions, and any other relevant terms and conditions related to the construction project. Contractors and clients must carefully review and negotiate the terms of the contract before starting the construction project to ensure a clear understanding of the financial obligations and expectations of both parties. Consulting legal experts familiar with construction laws and regulations specific to North Dakota can provide valuable guidance and assist in drafting or reviewing construction contracts to protect the interests of all parties involved.
