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 Georgia: scope of work, work site, warranty and insurance.
South Fulton Georgia Construction Contract Cost Plus or Fixed Fee refers to the two primary types of construction contracts used in the South Fulton area — cost plus contracts and fixed fee contracts. These contracts outline the financial arrangements between the property owner and the construction company, specifying how costs will be determined and paid for the construction project. Cost plus contracts, a commonly used contract type, involves reimbursing the construction contractor for all actual costs incurred during the project, along with an agreed-upon fee or percentage of the total cost as profit. This type of contract provides transparency and allows for flexibility in managing unforeseen expenses that may arise during the construction process. On the other hand, fixed fee contracts involve a predetermined total cost that the contractor agrees to complete the project for. This includes all labor, materials, and other expenses required to finish the construction project. The property owner pays the agreed-upon fixed fee regardless of any changes or unforeseen costs that may occur during the construction process. Both contract types have their advantages and disadvantages. For property owners seeking more control over the project's budget and costs, a cost plus contract may be preferable. It allows for better negotiation of expenses and provides greater transparency in cost breakdowns. Moreover, it can reduce the possibility of surprises when unforeseen circumstances, such as material price fluctuations or design changes, affect the construction project. However, fixed fee contracts offer the property owner more certainty in terms of budgeting, as the total cost is predetermined, and the contractor assumes the risk of any cost overruns. This type of contract can be beneficial when the project's scope is well-defined and there is less potential for significant changes or additions. In South Fulton, there may be variations of these two primary contract types, such as cost plus a percentage of cost (where the contractor's fee is a percentage of the total cost), or fixed fee with guaranteed maximum price (GMP) contracts. GMP contracts establish a fixed fee, but also set a maximum limit to protect the property owner from cost overruns. These variations help accommodate different project requirements and priorities. When entering into a South Fulton Georgia Construction Contract, whether cost plus or fixed fee, it is crucial for all parties involved to thoroughly review and understand the contract terms, payment schedules, and any potential change order processes to ensure a successful construction project delivery and minimize potential disputes.South Fulton Georgia Construction Contract Cost Plus or Fixed Fee refers to the two primary types of construction contracts used in the South Fulton area — cost plus contracts and fixed fee contracts. These contracts outline the financial arrangements between the property owner and the construction company, specifying how costs will be determined and paid for the construction project. Cost plus contracts, a commonly used contract type, involves reimbursing the construction contractor for all actual costs incurred during the project, along with an agreed-upon fee or percentage of the total cost as profit. This type of contract provides transparency and allows for flexibility in managing unforeseen expenses that may arise during the construction process. On the other hand, fixed fee contracts involve a predetermined total cost that the contractor agrees to complete the project for. This includes all labor, materials, and other expenses required to finish the construction project. The property owner pays the agreed-upon fixed fee regardless of any changes or unforeseen costs that may occur during the construction process. Both contract types have their advantages and disadvantages. For property owners seeking more control over the project's budget and costs, a cost plus contract may be preferable. It allows for better negotiation of expenses and provides greater transparency in cost breakdowns. Moreover, it can reduce the possibility of surprises when unforeseen circumstances, such as material price fluctuations or design changes, affect the construction project. However, fixed fee contracts offer the property owner more certainty in terms of budgeting, as the total cost is predetermined, and the contractor assumes the risk of any cost overruns. This type of contract can be beneficial when the project's scope is well-defined and there is less potential for significant changes or additions. In South Fulton, there may be variations of these two primary contract types, such as cost plus a percentage of cost (where the contractor's fee is a percentage of the total cost), or fixed fee with guaranteed maximum price (GMP) contracts. GMP contracts establish a fixed fee, but also set a maximum limit to protect the property owner from cost overruns. These variations help accommodate different project requirements and priorities. When entering into a South Fulton Georgia Construction Contract, whether cost plus or fixed fee, it is crucial for all parties involved to thoroughly review and understand the contract terms, payment schedules, and any potential change order processes to ensure a successful construction project delivery and minimize potential disputes.
