CONTRACTS AND

SPECIFICATION
CONSTRUCTION CONTRACTS
- is simply an agreement between two or more parties to
provide services in exchange for payment. Not much is
needed to form a binding contract. Legally speaking only
4 things are needed to form a valid construction contract.

1. An offer
2. Acceptance
3. Consideration
4. Legality
 COMMON TYPES OF CONSTRUCTION
CONTRACTS:

• Lump-Sum/Fixed Price Contracts - this is the simplest form of a construction

contract.

• Cost-Plus Contracts - these contracts require that a contractor be reimbursed for all
costs incurred on the project (costs).

• Time & Materials Contracts - This is an agreement where the contractor is paid an
hourly rate for labor, the actual cost of materials and equipment, and an additional
amount to cover overhead and profit.
 COMMON TYPES OF CONSTRUCTION
CONTRACTS:

• Unit Price Contracts - an arrangement where the customer pays a fixed,

agreed-upon amount for completion of each unit of work.

• Guaranteed Maximum Price (GMP) Contracts - This is a cost-type

contract, where there is an agreed-upon limit to how much the customer
will be obligated to pay.
CONTRACT DOCUMENTS
• Contract documents are group of
documents that define the price,
conditions, clauses, schedule and scope
of the executed work along with any
other job specific details. They can be
both written and graphic and act as a
legal definition of the contract.
 9 ESSENTIAL CONSTRUCTION CONTRACT
DOCUMENTS:

• The Construction Agreement - This document will set out the general
purpose of the contract and the contract price.

• General Conditions - establish all the rights and obligations of the

contracting parties. The general conditions will also include all the
suspension, termination, and alternative dispute resolution procedures.

• Special Conditions - are typically an addition or amendment to the

general conditions section. This document will detail the specific clauses
and conditions for each task or project.
 9 ESSENTIAL CONSTRUCTION CONTRACT
DOCUMENTS:

• Scope of Work - is a crucial element of a construction contract. This

document will describe, in detail, the precise tasks and objectives of each
contractor.

• Drawings - Drawings provide a simple overview of the project as a

whole. The architect or construction manager should present these to
contractors before any construction activities begin.

• Specifications - The section for construction specification contains all

the technical data and performance requirements.
 9 ESSENTIAL CONSTRUCTION CONTRACT
DOCUMENTS:

• Bill of Quantities - A bill of quantities isn’t optional on some contracts, but it can be
helpful. A bill of quantities is an itemized list of the various materials, parts, and labor
required. This list is typically provided during the bidding process.

• Construction Schedule - A well-formulated construction schedule requires close

attention to detail. Any updates should be readily accessible to everyone on the project.

• Schedule of Values - A schedule of values is provided by a contractor and lists all the
work items from start to finish. It will allocate the entire contract sum among the
various portions of the work.
CONSTRUCTION
SPECIFICATIONS
• are a part of the construction contract. They
detail the work, materials, and installation
required to complete a project. The specs are a
subcontractor’s field guide on what materials to
use, how to install them, and the desired level
of quality.
 TYPES OF CONSTRUCTION
CONTRACT SPECIFICATIONS:
1. Prescriptive Specification - provide step-by-step details and instructions on
how the types of materials to be used and the desired installation methods.
However, these types of specs can be split into three subcategories.

• General Provisions - requirements surrounding codes and standards

• Required Products - the type of products required based on performance and
structural stipulations
•  Execution Procedures - how to do the install and measure its effectiveness
 TYPES OF CONSTRUCTION
CONTRACT SPECIFICATIONS:
2. Performance Specifications - will provide all of the
operations requirements to complete a project.

3. Proprietary Specifications - these third types of specifications

are the rarest of the breed. They are used when a specific type of
product or material is required for installation.
THANK YOU!
JOANNA LASAC
YRA VILUAN
TRIXY BONAGUA