Construction Agreement Definition

Misunderstandings are a bit inevitable during a construction project. However, if the details of the work to be done are included in a construction contract, it can help make life easier for all parties involved. In the article on advisor appointments, you will find agreements for the appointment of consultants, independent client advisors, site inspectors, project managers, client representatives, etc. There are three main types of production orders identified according to the mechanism for calculating the amount to be paid by the employer: lump sum contracts, measurement contracts and refundable contracts. The different types are distinguished mainly by the person who takes care of the risks incurred, the party who has to bear the cost overruns and the party who can retain the savings if the project costs are lower than the estimated costs. [3] A commercial contract is a contract that includes all the work to be performed for the construction of a commercial or non-residential building. A skillfully crafted commercial contract can protect the interests of both parties, minimize risk, and increase the contractor`s profitability. Another useful definition of the EJCDC® C-700 is that of the “Project Manual”: Project Manual – Written documents prepared or made available for the acquisition and construction of the plant, including but not limited to tender documents or other works acquisition documents, geotechnical and existing information on conditions, the agreement, bond forms, general terms and conditions, additional conditions and specifications. The contents of the project manual can be linked in one or more volumes. Construction contracts are also known by other names, such as: a “base date” is a deadline from which changes in conditions can be evaluated. In a construction contract, the inclusion of a base date is generally used as a risk-sharing mechanism between the owner and the contractor for changes that may occur between the contractor`s fixing of the bid price and the signing of the contract. This period can be very long and the changes that occur can have a significant impact on the cost of the work.

[22] The introduction of building information modeling (BIM) for a project requires the definition of specific commitments and liabilities and the agreed use of the model must be limited. This is usually achieved through the introduction of a BIM protocol. BIM protocols can be integrated into contract documents by adding a template allowing a modification as proposed by the CIC BIM protocol. In a contract, rights and obligations are created by the agreements concluded between the parties to the contractual agreement. .