Essay on Construction Contracts

Words: 1041
Pages: 5
Open Document
Chapter 4 – Construction Contracts

1. Name and briefly describe each of the two basic types of competitively bid construction contracts. Which type would be most likely used for building the piers to support a large suspension bridge. Why?
Two basic types of competitively bid construction contracts are lump-sum and the unit-price contract. The lump-sum contract is when the contractor agrees to complete all work for a pre-determined price including profit and the contract. The unit-price contract is when the contractor quotes work on units separately instead of entire project. Price is based on units of work performed, and cost varies depending on the quantities of units. Building the piers to support a large suspension bridge will …show more content…
It is also requires additional oversight to ensure that only permitted costs are paid and that the contractor is exercising satisfactory overall costs. 7. Under what circumstances is a cost-plus contract favorable to both owner and contractor?
With a cost-plus contract, the contractor may be more suitable to bid low, knowing he can charge more if unforeseen circumstances arise thus saving money for the owner. Home owners often settle on the lowest bid so they can save more money. 8. Valid contracts require an offer, an acceptance, and a consideration. Identify these elements in the following cases: (a) The purchase of an item (b) The hiring of labor (c) A paid bus ride (d) A construction contract (e) The position of staff member in a firm
(a) The purchase of an item at the store
The offer for purchase of an item in a store would be taking it to cash register. The acceptance would be for the cashier to take the item and scan it. Finally the consideration is to exchange money for the product.
(b) The hiring of labor
The offer for hiring of labor would be a person seeing a job advertisement at fixed wage. The acceptance would be accepting the fixed wage. Finally the consideration is if the person is paid at the end of the day for work efficiency.

(c) A paid bus ride
The offer for a paid bus ride would be a person going to bus station, and asking for fares of the ticket. The acceptance
Show More

Related Documents: Essay on Construction Contracts

nature of construction contracts Essay

Nature of Construction Contracts Introduction For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process. Using different types of sources an explanation to the basic principles of contract law and how they apply. From doing this there will then be an explanation to what extent standard forms of contract are special types of contract. Contract…

Words 1535 - Pages 7

Essay on Accounting Assignment

Curtiss Construction Company, Inc., entered into a fixed-price contract with Axelrod Associates on July 1, 2013, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. Curtiss appropriately accounts for this contract under the completed contract method in its financial statements. The building was completed Curtiss Construction Company…

Words 1014 - Pages 5

Unit 3 Assignment 1 Philadelphia School

Assignment 1: Philadelphia School District Construction manager agency means a fee based service in which CM is responsible exclusively to the owner, acts in the owner’s interests throughout each stage of the project and does not contract with subcontractors. It offers advice on optimum use of available funds; project scheduling; control of the scope of the work; avoidance of delays, changes, and disputes; optimum flexibility in contracting; and procurement. Construction manager at risk is a delivery method…

Words 753 - Pages 4

Web Based Contracts

P1: OSO JWDD004-04 JWDD004-Halpin-v6 July 18, 2005 15:0 Chapter 4 Construction Contracts Web-based Contracts The Need Web-based contracting provides an environment supporting scheduling, controlling, regulating, analyzing, and auditing the procurement and delivery of materials and services for construction in an electronic format. By enabling online competitive bidding and improving the record-keeping associated with the purchasing process, buyers will be able to quickly and easily compare…

Words 9100 - Pages 37

Mr Majek Kuyoro Essay

School of Architecture and ConstructionM.Sc. PortfolioCourse: Construction Management (BUIL1051) Hand –out: 21st January 2013Hand in: 8th April 2013Term Paper: Collaborative methods of Contracting Header sheet Number: | Introduction The Construction industry has a long history of poor project delivery due to fragmentation, lack of appropriate training, lack of automation, and slow uptake of ICT etc. Various industry and government reports have tried to address these problems and there…

Words 452 - Pages 2

Essay on Actg351 Hw1

HW #1 Answers 1. Curtiss Construction Company, Inc. entered into a fixed-price contract with Axelrod Associates on July 1, 2011, to construct a four-story office building. At that time, Curtiss estimated that it would take between two and three years to complete the project. The total contract price for construction of the building is $4,000,000. The building was completed on December 31, 2013. Accumulated contract costs incurred, estimated costs to complete the contract, accumulated billings to…

Words 1001 - Pages 5

Procurement Strategy for a Construction Project Essay example

1.0 Introduction To select a suitable procurement strategy for a construction project, there are some issues which need to consider. From all of those issues, there are 3 big issues that mainly affect the selection decision which are time, cost and quality. There is several type of procurement strategy available in market that commonly used for construction project and each of the common method will be analyze and compare to find the most appropriate method for this project. The choice of procurement…

Words 1217 - Pages 5

Essay Management Procurement

Procurement A method where overall design is the responsibility of the client’s consultants, and the contractor is responsible both for defining packages of work and then for managing the carrying out of this work through separate trades or works contracts. ● Appointment of the contractor is usually by negotiation or tender, and interview. He is paid a management fee. The work packages are let by competitive tender. ● The client will start by appointing consultants to prepare project drawings, a project…

Words 569 - Pages 3

Essay about Project Management Guidebook

Introduction The Construction industry has a long history of poor project delivery due to fragmentation, lack of appropriate training, lack of automation, and slow uptake of ICT etc. Various industry and government reports have tried to address these problems and there has been a considerable improvement in the last decade. However, it is the use of partnering that seems to have galvanized processes in construction industry in the recent past. Aims a) To explore a contract management issues in…

Words 409 - Pages 2

Davis-Bacon Act Case Study

a Federally supported contracts. General program responsibilities are controlled by the Department of Labor (DoL). Project specific obligations are managed by the hiring agency. The DBRA requirements are employed via a number of Federal assistance programs through the related act provisions in each agency's implementing statutes. What it covers The DBRA demands payment of normal wages on federally backed construction projects and applies to any federal government contract that exceed $2,000 for…

Words 1629 - Pages 7