Billing Calculations

Question 1

A fixed dollar rate.

Answer 1

Flat Rate

Question 2

The employee’s total payroll cost plus a percentage to cover employer costs not included in tax items or benefit items.

Answer 2

Net Cost plus Percentage

Question 3

Project cost ceiling agreed to in writing between the owner and contractor.

Answer 3

Fixed Limit

Question 4

Specific sum to cover costs, exclusive of reimbursement for expenses.

Answer 4

Fixed Fee

Question 5

Compensation is stated as a dollar amount.

Answer 5

Stipulated Sum

Question 6

Compensation is computed as a percentage of construction/project costs

Answer 6

Percentage Fee

Question 7

Compensation equals the square footage of the structure multiplied by a pricing factor.

Answer 7

Per Square Foot

Question 8

Charged at cost plus a reasonable administrative charge. This includes things like travel & communication expenses, and project incentives.

Answer 8

Reimbursable Expenses

Question 9

Money paid by contractor to the owner for actual anticipated loss the owner will incur if project is not finished on time.

Answer 9

Liquidated Damages

Question 10

A certain percentage of the payment that is awarded to the contractor for finishing the job ahead of schedule.

Answer 10

Bonus

Question 11

Construction contract term for the funds that are earned by the contractor but not paid until some agreed upon date.

Answer 11

Retainage (Holdback)