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Format of Contract Account Overview Format of contract account refers to how the various expenses related to a given contract will be organized and accounted for. Contracts are usually undertaken as per a customer's requirements, and so a unique account containing the details pertaining to each contract should be kept.

Features of Contract Accounting Direct Costs 2212 Direct cost is the main proportion of expenses in a contract account.Indirect Costs 2212 Proportion of the indirect cost is very low in a contract accounting such as expenses related to the head office in case of various contracts.

Construction Contract Types Every Builder Should Know About Cost-Plus Contract.Design-Build Contract.Guaranteed Maximum Price Contract.Incentive Construction Contracts.Integrated Project Delivery Contract.Lump-Sum Contract.Time and Materials Contract.Unit Price Contract.

The three most common contract types include: Fixed-price contracts. Cost-plus contracts. Time and materials contracts.

A lump sum contract, also known as a stipulated sum contract, is a construction agreement in which the contractor agrees to complete the project for a predetermined, set price. Under a lump sum agreement, the contractor submits a total project price instead of bidding on each individual item.

Is there a difference between fixed price and lump sum contracts? No, fixed price contracts and lump sum contracts are interchangeable terms for contracts that provide clients with one price to pay for goods and services. Both terms are widely acceptable and used in the residential construction industry.

Learn below about the four most common types of construction contracts. Lump Sum Contract. A lump sum contract sets one determined price for all work done for the project.Unit Price Contract.Cost Plus Contract.Time and Materials Contract.