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 Oregon: scope of work, work site, warranty and insurance.
Gresham Oregon Construction Contract: Cost Plus or Fixed Fee In Gresham, Oregon, construction contracts come in two primary forms: Cost Plus and Fixed Fee. These types of contracts determine how the contractor will be compensated for their services and the financial structure of the project. Let's delve into the details of each type: 1. Cost Plus Construction Contract: The Cost Plus Construction Contract, also known as a "cost-reimbursement contract," is an agreement where the owner agrees to pay the contractor for the actual expenses incurred during the construction process. This includes the cost of labor, materials, subcontractors, and any other direct project-related expenses. Along with the expenses, a predetermined fee or percentage of the total project cost is added to cover the contractor's overhead and profit. This type of contract provides greater transparency to the owner as they have access to all the cost breakdowns, invoices, and receipts. It ensures that the contractor is reimbursed for the actual costs incurred and prevents any potential disputes regarding expense manipulation. However, due to the open-ended nature of this contract, the total project cost might be uncertain until completion. 2. Fixed Fee Construction Contract: The Fixed Fee Construction Contract, also known as a "lump sum contract," is an agreement where the owner and contractor agree on a fixed and predetermined price for the entire construction project. This price, often based on a detailed estimate, includes all the anticipated costs of labor, materials, permits, equipment, and any other necessary expenses. The contractor is responsible for managing the project within the agreed-upon budget. Under the Fixed Fee Construction Contract, the contractor assumes the risk of unexpected cost increases or delays, providing more certainty for the owner regarding the total project cost. This type of contract is common for smaller projects with clearly defined scopes, reducing the need for constant cost monitoring. However, any changes or additions requested by the owner during construction may lead to additional charges. In Gresham, Oregon, these two types of construction contracts, Cost Plus and Fixed Fee, provide owners with flexibility and different levels of cost control. The choice between the two depends on the project's complexity, size, budget, and the owner's preferences. It is essential for both parties to carefully review and negotiate the terms of these contracts to ensure a successful construction endeavor in Gresham, Oregon. Keywords: Gresham Oregon, construction contract, cost plus, fixed fee, lump sum, cost reimbursement, expense breakdown, predetermined fee, total project cost, risk, unforeseen costs, budget, negotiation, construction services.Gresham Oregon Construction Contract: Cost Plus or Fixed Fee In Gresham, Oregon, construction contracts come in two primary forms: Cost Plus and Fixed Fee. These types of contracts determine how the contractor will be compensated for their services and the financial structure of the project. Let's delve into the details of each type: 1. Cost Plus Construction Contract: The Cost Plus Construction Contract, also known as a "cost-reimbursement contract," is an agreement where the owner agrees to pay the contractor for the actual expenses incurred during the construction process. This includes the cost of labor, materials, subcontractors, and any other direct project-related expenses. Along with the expenses, a predetermined fee or percentage of the total project cost is added to cover the contractor's overhead and profit. This type of contract provides greater transparency to the owner as they have access to all the cost breakdowns, invoices, and receipts. It ensures that the contractor is reimbursed for the actual costs incurred and prevents any potential disputes regarding expense manipulation. However, due to the open-ended nature of this contract, the total project cost might be uncertain until completion. 2. Fixed Fee Construction Contract: The Fixed Fee Construction Contract, also known as a "lump sum contract," is an agreement where the owner and contractor agree on a fixed and predetermined price for the entire construction project. This price, often based on a detailed estimate, includes all the anticipated costs of labor, materials, permits, equipment, and any other necessary expenses. The contractor is responsible for managing the project within the agreed-upon budget. Under the Fixed Fee Construction Contract, the contractor assumes the risk of unexpected cost increases or delays, providing more certainty for the owner regarding the total project cost. This type of contract is common for smaller projects with clearly defined scopes, reducing the need for constant cost monitoring. However, any changes or additions requested by the owner during construction may lead to additional charges. In Gresham, Oregon, these two types of construction contracts, Cost Plus and Fixed Fee, provide owners with flexibility and different levels of cost control. The choice between the two depends on the project's complexity, size, budget, and the owner's preferences. It is essential for both parties to carefully review and negotiate the terms of these contracts to ensure a successful construction endeavor in Gresham, Oregon. Keywords: Gresham Oregon, construction contract, cost plus, fixed fee, lump sum, cost reimbursement, expense breakdown, predetermined fee, total project cost, risk, unforeseen costs, budget, negotiation, construction services.
