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 Washington: scope of work, work site, warranty and insurance.
King Washington Construction Contract Cost Plus or Fixed Fee refers to two different types of contracts commonly used in the construction industry to determine the amount a contractor will be paid for their services. 1. Cost Plus Contract: A Cost Plus Contract in the context of King Washington Construction refers to an agreement between the contractor and the client where the contractor is reimbursed for all the costs incurred in completing the project, along with an additional fee or percentage that covers the contractor's profit and overhead expenses. This type of contract is suitable for projects where the scope and timeline are uncertain, as it allows flexibility in accommodating changes and unforeseen expenses. The main advantage of a Cost Plus Contract is that it provides transparency, as the client is aware of the actual project costs. 2. Fixed Fee Contract: A Fixed Fee Contract, also known as a Lump-Sum Contract, is an alternative to the Cost Plus Contract. In this type of contract, the contractor and the client agree upon a fixed total amount for completing the project. The fixed fee includes all costs, such as materials, labor, equipment, and overhead expenses. The contractor bears the risk of any cost overruns or unexpected expenses that may arise during the construction process. Fixed Fee Contracts are commonly used for projects with well-defined scopes, clear timelines, and minimal changes expected. The advantage of a Fixed Fee Contract is that it provides predictability in terms of project costs for both the contractor and the client. In addition to these two main types of contracts, there are variations and combinations that can be used in King Washington Construction projects, including: — Cost Plus Percentage Fee: In this arrangement, the contractor is reimbursed for all project costs, but the fee is determined as a percentage of the total project cost. — Cost Plus Fixed Fee: Similar to a Cost Plus Percentage Fee, but instead of a percentage, a fixed fee is agreed upon, providing more predictability for both parties. — Guaranteed Maximum Price (GMP) Contract: In this type of contract, the contractor agrees to complete the project within a set maximum price. If the actual costs are lower than the maximum price, the client benefits from savings. However, if the costs exceed the maximum price, the contractor bears the additional expenses. In summary, King Washington Construction Contract Cost Plus or Fixed Fee encompasses two primary types of contracts: the Cost Plus Contract, which reimburses the contractor for project costs with an added fee, and the Fixed Fee Contract, where a predetermined lump sum covers all project expenses. These contracts provide flexibility and predictability depending on the project's complexity, scope, and potential changes. Additional variations, such as Cost Plus Percentage Fee and Guaranteed Maximum Price Contracts, may also be used in specific circumstances.King Washington Construction Contract Cost Plus or Fixed Fee refers to two different types of contracts commonly used in the construction industry to determine the amount a contractor will be paid for their services. 1. Cost Plus Contract: A Cost Plus Contract in the context of King Washington Construction refers to an agreement between the contractor and the client where the contractor is reimbursed for all the costs incurred in completing the project, along with an additional fee or percentage that covers the contractor's profit and overhead expenses. This type of contract is suitable for projects where the scope and timeline are uncertain, as it allows flexibility in accommodating changes and unforeseen expenses. The main advantage of a Cost Plus Contract is that it provides transparency, as the client is aware of the actual project costs. 2. Fixed Fee Contract: A Fixed Fee Contract, also known as a Lump-Sum Contract, is an alternative to the Cost Plus Contract. In this type of contract, the contractor and the client agree upon a fixed total amount for completing the project. The fixed fee includes all costs, such as materials, labor, equipment, and overhead expenses. The contractor bears the risk of any cost overruns or unexpected expenses that may arise during the construction process. Fixed Fee Contracts are commonly used for projects with well-defined scopes, clear timelines, and minimal changes expected. The advantage of a Fixed Fee Contract is that it provides predictability in terms of project costs for both the contractor and the client. In addition to these two main types of contracts, there are variations and combinations that can be used in King Washington Construction projects, including: — Cost Plus Percentage Fee: In this arrangement, the contractor is reimbursed for all project costs, but the fee is determined as a percentage of the total project cost. — Cost Plus Fixed Fee: Similar to a Cost Plus Percentage Fee, but instead of a percentage, a fixed fee is agreed upon, providing more predictability for both parties. — Guaranteed Maximum Price (GMP) Contract: In this type of contract, the contractor agrees to complete the project within a set maximum price. If the actual costs are lower than the maximum price, the client benefits from savings. However, if the costs exceed the maximum price, the contractor bears the additional expenses. In summary, King Washington Construction Contract Cost Plus or Fixed Fee encompasses two primary types of contracts: the Cost Plus Contract, which reimburses the contractor for project costs with an added fee, and the Fixed Fee Contract, where a predetermined lump sum covers all project expenses. These contracts provide flexibility and predictability depending on the project's complexity, scope, and potential changes. Additional variations, such as Cost Plus Percentage Fee and Guaranteed Maximum Price Contracts, may also be used in specific circumstances.
