This form is a Construction Contract that may be executed with either a cost plus or fixed fee payment arrangement. The form contains the following additional subject matters and complies with the laws of the State of Colorado: scope of work, work site, warranty and insurance.
The construction industry in Aurora, Colorado operates under various types of contracts, two of which are the Cost Plus and Fixed Fee contracts. These contracts govern the relationship between the owner and the contractor, outlining the payment structure and responsibilities of each party. Let's delve into these specific construction contracts in detail. 1. Aurora Colorado Construction Contract Cost Plus: The Cost Plus contract is a common agreement used in construction projects in Aurora, Colorado. It is designed to reimburse the contractor for their incurred costs, along with an added fee (usually a percentage of the total cost). Here's a breakdown of the key elements and features: a) Reimbursement of costs: In a Cost Plus contract, the owner agrees to pay the contractor its actual expenses. These expenses include materials, labor, equipment, subcontractor fees, permits, and any other directly relevant costs. b) Plus Fee: To compensate the contractor for their services, a predetermined fee is added to the total costs. This fee is typically calculated as a percentage of the direct costs and serves as the contractor's profit. c) Transparency and openness: The Cost Plus contract demands transparency regarding all costs incurred by the contractor. The contractor must provide detailed records and invoices to support their expenses. d) Flexibility and adaptability: This contract type is suitable for projects with uncertain scopes, evolving designs, or challenging site conditions. It allows for adjustments and changes in the project without requiring significant contract modifications. 2. Aurora Colorado Construction Contract Fixed Fee: The Fixed Fee contract, also known as a Lump Sum contract, is another prevalent contract type in Aurora, Colorado's construction industry. In this type of agreement, the contractor agrees to complete the project for a predetermined fixed amount. Let's explore the key features: a) Set project price: The Fixed Fee contract involves a specific, agreed-upon amount for the entire construction project. This price covers all the costs incurred by the contractor, including labor, materials, equipment, subcontractor fees, and overhead expenses. b) Defined scope: The scope of work and project specifications must be clearly outlined before signing the Fixed Fee contract. Any changes or additional work requested by the owner may result in additional costs or modifications to the contract. c) Clarity and predictability: The Fixed Fee contract provides the owner with a clear understanding of the project's total cost from the outset. It helps control expenses and eliminates the need for extensive record-keeping or auditing of costs. d) Contractor's risk: In a Fixed Fee contract, the contractor assumes more risk than in a Cost Plus contract. Any unforeseen issues or cost overruns will impact the contractor's profit, thereby incentivizing careful planning and accurate pricing. These are the primary types of construction contracts used in Aurora, Colorado: Cost Plus and Fixed Fee/Lump Sum. Depending on the specific project requirements, complexity, and level of risk involved, one of these contract types may be more suitable than the other. It is essential for both parties to carefully review and negotiate the terms of the contract to ensure a successful construction project within the Aurora, Colorado area.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
