Lecture 15 - Pricing & Payment

Question 1

Pricing

Answer 1

Determine and explain the tender price

Question 2

Payment

Answer 2

how/when the contractor will be paid

Question 3

Lump Sum

Answer 3

contractor is paid pre-determined price for completion of a whole contract provided at tender

Question 4

Re-measurement

Answer 4

contractor paid for measured work done, through Bill of quantitites or schedule of rates

Question 5

Bill of Quantities

Answer 5

Project is broken down into individual items with appox. amounts from drawing

Question 6

Schedule of Rates

Answer 6

Items are listed, no quantity, tenderer makes approx. amounts, used when work cannot be accurately found

Question 7

Activity Schedule

Answer 7

List of activities which tenderer needs to undertake to complete project, total price based on sum of activity prices

Question 8

Cost Reimbursable

Answer 8

Contractor is reimbursed for actually incurred cost plus fee. Used for inadequate definition of work or exceptional complexity

Question 9

Target Price

Answer 9

Contractor is reimbursed costs and bids price/fee at tender