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 Tennessee: scope of work, work site, warranty and insurance.
Memphis Tennessee Construction Contract Cost Plus or Fixed Fee is a type of agreement that outlines the financial aspects of a construction project in Memphis, Tennessee. It determines how the contractor's payment will be calculated and specifies whether it will be based on a cost-plus or fixed fee basis. In a Cost Plus contract, the contractor is reimbursed for the actual costs they incur during the project, along with an additional fee or percentage agreed upon in advance. This fee typically covers the contractor's overhead expenses, such as equipment, labor, and materials. The Cost Plus contract is often used when the scope of work is not well-defined or when changes to the project are anticipated. On the other hand, a Fixed Fee contract establishes a predetermined, fixed amount that the contractor will be paid for completing the project. This amount is agreed upon before the project commences and is not subject to change, regardless of any unexpected costs or changes in the project. The Fixed Fee contract is generally used when the project's scope is well-defined and there is a clear understanding of the work involved. Within Memphis Tennessee, there may be several variations or subcategories of Cost Plus or Fixed Fee contracts, depending on specific project requirements or industry standards. These variations can include: 1. Guaranteed Maximum Price (GMP): This type of contract sets an upper limit or maximum price for the project. The contractor agrees to complete the project within this price limit and assumes any additional costs or losses. 2. Lump Sum Contract: Also known as a fixed price contract, this arrangement involves a single agreed-upon amount for the entire project. It is most commonly used when the project's scope, schedule, and requirements are well-defined. 3. Unit Price Contract: In this type of contract, the contractor's payment is based on predefined unit prices for specific items or tasks. The total payment is then calculated by multiplying the unit prices by the quantities used or completed. 4. Time and Material Contract: This type of contract combines elements of both Cost Plus and Fixed Fee contracts. The contractor is paid based on the actual labor hours and materials used, plus an agreed-upon fee or markup. It is important for both parties — the contractor and the client – to carefully review and understand the terms of the Cost Plus or Fixed Fee contract before entering into an agreement. Clear communication and proper documentation are essential to ensure that both parties are aware of their responsibilities, financial obligations, and any potential risks or adjustments that may arise during the construction project in Memphis, Tennessee.Memphis Tennessee Construction Contract Cost Plus or Fixed Fee is a type of agreement that outlines the financial aspects of a construction project in Memphis, Tennessee. It determines how the contractor's payment will be calculated and specifies whether it will be based on a cost-plus or fixed fee basis. In a Cost Plus contract, the contractor is reimbursed for the actual costs they incur during the project, along with an additional fee or percentage agreed upon in advance. This fee typically covers the contractor's overhead expenses, such as equipment, labor, and materials. The Cost Plus contract is often used when the scope of work is not well-defined or when changes to the project are anticipated. On the other hand, a Fixed Fee contract establishes a predetermined, fixed amount that the contractor will be paid for completing the project. This amount is agreed upon before the project commences and is not subject to change, regardless of any unexpected costs or changes in the project. The Fixed Fee contract is generally used when the project's scope is well-defined and there is a clear understanding of the work involved. Within Memphis Tennessee, there may be several variations or subcategories of Cost Plus or Fixed Fee contracts, depending on specific project requirements or industry standards. These variations can include: 1. Guaranteed Maximum Price (GMP): This type of contract sets an upper limit or maximum price for the project. The contractor agrees to complete the project within this price limit and assumes any additional costs or losses. 2. Lump Sum Contract: Also known as a fixed price contract, this arrangement involves a single agreed-upon amount for the entire project. It is most commonly used when the project's scope, schedule, and requirements are well-defined. 3. Unit Price Contract: In this type of contract, the contractor's payment is based on predefined unit prices for specific items or tasks. The total payment is then calculated by multiplying the unit prices by the quantities used or completed. 4. Time and Material Contract: This type of contract combines elements of both Cost Plus and Fixed Fee contracts. The contractor is paid based on the actual labor hours and materials used, plus an agreed-upon fee or markup. It is important for both parties — the contractor and the client – to carefully review and understand the terms of the Cost Plus or Fixed Fee contract before entering into an agreement. Clear communication and proper documentation are essential to ensure that both parties are aware of their responsibilities, financial obligations, and any potential risks or adjustments that may arise during the construction project in Memphis, Tennessee.
