CONSTRUCTION

CONTRACT
CE 123 – CONSTRUCTION
METHODS AND PROJECT
MANAGEMENT
CONTRACT
- A mutual or legally binding agreement
between two parties based on policies
and conditions recorded in document
form.
- Usually executed between the owner of
the project and the contractor
WHAT MUST A CONSTRUCTION
CONTRACT CONTAIN?
Project description: This section of the
contract agreement contains a blurb or
extract of what the project is about.
Contract price: This area will describe the
type of contract price been awarded and
the total amount of money that was being
contracted.
Construction schedule or calendar: The
total of days or how the project schedule
will be divided.
WHAT MUST A CONTRACT
CONTAIN? (cont’d)
Construction conditions and
responsibilities: The section of conditions
and responsibilities is the one that sets
responsibilities for the owner and the
contractor, and the extents of who is
responsible for providing documents and
information.
TYPES OF CONSTRUCTION
CONTRACT
 UNIT PRICE CONTRACT
- based on anticipated quantities of
items which are counted in the project

 LUMPSUM CONTRACT
- also named as “FIXED PRICE
CONTRACT”
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