Types of Building Contracts: Traditional

Question 1

Lump sum contracts - when is the contract sum determined?

Answer 1

• contract sum determined before construction

Question 2

What are Contracts ‘with quantities’ price based on?

Answer 2

• Priced on basis of drawings and firm bill of quantities

Question 3

What are Contracts ‘without quantities’ price based on?

Answer 3

• priced on basis of drawings and another document / spec or work schedules

Question 4

Name 2 factors of Measurement Contracts

Answer 4

• Contract sum is not finalised until after completion
• for work which Contractor understates and cannot for good reason be measured accurately before Tenders are invited. Design will be complete and accurate picture of quality required will be given to Tenderer

Question 5

Cost reimbursement contracts -

also known as ‘cost plus’ or ‘prime cost contract

Name 3 facts about them

Answer 5

• sum based on actual costs of labour, plant and materials
• can be fixed sum or percentage
• high risk for Client