We undertake Construction Projects of various sorts and scopes with the help of the following types of Construction Contracts:
In this type of Contract, the Project is quantified and itemized and a bill of Quantities (BOQ) is prepared. Unit Price is given to each and every quantified item of the BOQ. Each unit price includes all labour, material, equipment, overhead, contingencies and profit.
It is advantageous in the sense that it gives clear picture of the cost and scope of the Project and thus helps avoid potential disputes. This results in minimum risk for both the owner and contractor.
Its disadvantage is the higher cost for the owner because it requires him to hire professional Engineers for quantification and invoice payment. This contract is more suitable for bigger projects
In this type of the Contract, the owner pays the actual cost of the work and we charge fee for services as percentage of the actual cost. In this type of the Contract, the owner enjoys the authority to control cost, quality and scope of the project. This is the contract of Minimum risk for contractor and of higher risk for the owner: this contract may encourage contractor for higher costs, as more the expenses, more will be his profit.
In this type of contract, Cost is fixed for the whole completed Project, encompassing all materials, activities and labor required to complete the Project in all respects. A well-defined scope of work and an accurate estimation of the Project’s cost are the main requirements for this type of Contract. For convenience, a house Project can be divided into two portions, the grey structure and the finishing part of the work.
In this type of the contract, risk is minimum for the owner and higher for the contractor
In this type of contract, cost is computed on the basis of rate per unit area (square foot) of the constructed areas of the building and a separate rate is applied to the external works. This contract may be separately applied to Grey Structure and finishing part of the building.
Covered area can be calculated in two ways:
This method, the area is calculated from multiplying length and width of walls (external sides) under the slabs, ignoring the projections or shades; this is also known as block area. The areas given on drawings are actually block areas, computed from wall-to-wall dimensions.
In this method, the covered area is calculated by multiplying length and width up to the ends of the shades or Projections. The area of Shades on windows is also added to the covered areas. The covered area calculated by this method happens to be more than that given in the drawings. The rate per covered area is different for each method of calculation. External works like boundary walls, Parapet walls, ramp, front and back yards, Overhead water tank, footpath main gate and landscaping are charged as extra work.
With the help of this contract, we provide the following services during the Project Initiation process:
I: Architectural Design
ii: Soli Testing:
iii: Structural Design
iv: Approvals from the concerned authorities
v: Documentation and Actual Construction
This contract is suitable for the owners who live away from the project locations.
We opt to follow any of the above-mentioned types of Contracts as per the demands, choices and convenience of the Project Owners. Labour rate Contract can also be an option.
