CONTRACT ADMINISTRATION

Contract Administration



Contract Administration

The contract for construction of works is the document signed by the Contractor and the Builder. The contract should describe what work must be performed and how it made the payment thereof.

Jobs are often complex and involve many operations different, requiring the builder to purchase a multitude of materials and various manufactured items and the use of a wide range of machines and the cooperation of people of different trades.

There are many ways to contract the payment of a construction. These differ primarily in the form of payment of the construction is done. Each of them determines the Builder a strategy different from the time of scheduling the process constructive and especially when setting priorities in the implementation of various work units. The most common types of contracts for construction are:

For easy understanding and recall of each type of contract have chosen some names, although not always used as here expressed, if you give an idea of ??the type of contract to which we refer (Hans, 2009).

Contract Project and Construction

In this type of contract the builder or contractor takes charge of the project and the construction of the works and its offer values ??the execution of the work described in a project, the same team or someone on behalf of Builders has written. In this type of contract the Contractor made ??the bid on a Statement of Basis, which defines succinctly the purpose or intent that want to get to construction, and makes free with the tendered to define how to achieve this, the same bidder must assess after your own project. The Contractor makes the award to that offer that is more acceptable to meet the objectives pursued with the construction or just one that you like. Some contractors are firmly in this type of contract, especially when it includes the financing of the whole operation. That is the manufacturer not only makes the entire project and its construction, but funding it and the Contractor agrees to pay over a number of years, usually many more than does the construction, the total amount of your promotion (Austen, 2006).

Today, in some cases, are among the works included in the contract including the maintenance of the building or facility built for a considerable amount of years. In some countries, is currently engaged in road sections in the contract including the complete package: Design, Construction and Maintenance for ten or fifteen years. The contractor (usually the Administration in recent cases) pact with the Developer to pay dilated in time for the entire operation, including, of course, in the amount of interest on deferred payment (Hackett, 2006).

Contract Price Closed

In this type of contract often called Turnkey Builder agrees to deliver a completely finished construction and state of operation upon delivery of a fixed amount, distributed in installments previously agreed upon, according to the progress of the work. Builder's offer is based on a study of the project provided by the Contractor, but the risk of ...