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Construction Contractor Forms Builder And Contractor

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Why use construction forms? Contractor Estimates

It provides a legal binging agreement for the owner and builder. It?s to make sure the job will be executed as specified and that the builder will receive compensation specified through the contract. This even means who the compensation will be distributed. There are several other kinds of construction contracts to fit anyone?s needs.

What are other types of construction contracts? Residential Remodeling Contractors

There are a few different kinds of construction contracts, which include fixed priced, cost plus and guaranteed maximum price. The fixed priced contract is for contractors to agree to a ?lump sum? price on the project. Best if used for project with well-planned projects and where the project owner needs price certainty.

The next type of contract is the cost plus. This contract is used when a project owner agrees to pay the contractor their cost and a fee. This gives the project owner more flexibility for design, because contractors know they will be paid for their time and cost of materials. Best for smaller projects or specific projects within large construction projects.

Another contract is called guaranteed maximum price. Under this contract, project owners agree to pay contractors for their time, cost of materials and a fee. This put the project at a price cap when decided the ?guaranteed maximum price?. It is best used for more sophisticated project owners and contractors.