工程管理英语论文(8)

conform to national regulation, and the contract should be strictly

Types of agreement

(1)Lump-sum agreement

(2)Unit-price agreement (3)Cost-plus-fee agreement In the Lump-sum agreement, the contractor agrees to construct the project, in accordance with the contract documents, for a set price arrived at through competitive bidding or negotiation. The contractor agrees that the work will be satisfactorily completed regardless of the difficulties encountered .this type of agreement provides the owner advance knowledge of construction costs and requires the constructor to accept the bulk of the risk associated with the project. There are some disadvantages and risks placed upon the general contractor. The contractor must complete the work at a guaranteed price even though the costs were only estimated. Because of the very nature and risks with the Lump-sum price, it is important that the contractor be able to accurately understand the scope of the project work required at time of bidding.

In the unit-price agreement the contractor bases the bid on estimated quantities of work and on completion of the work in accordance with the contract documents .the owner of the contracting agency typically provides the quantity takeoff. This type of contraction is most prevalent in road construction. It allows the contractor to spend most of their time working on pricing the labor and materials required for the project while checking for the most economical approach to handle the contraction process.

Under lump-sum contracts each contractor does a quantity takeoff, which considerably increases the chances for quantity errors and adds overhead to all the contractors.

In cost-plus-fee agreements the contractor is reimbursed for the construction costs as defined in the agreement .however, the contractor is not reimbursed for all items, and a complete understanding of reimbursable and nom

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