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Construction Contracts Assignment Help

Know How You can Excel in Construction Contracts from Myhomeworkhelp.Com

Construction contracts are made between two parties to execute a particular task and receive compensation for the same. In order to understand the meaning of construction contracts and how businesses use it, it is essential to understand the types and importance. With construction contracts homework help from myhomeworkhelp.com, you will be able to do that. A proper construction contract should include all the necessary specification and thus is an essential aspect of Accounting.

What are construction contracts?

Construction contracts are legally binding contracts between two parties that they will complete a particular task and receive compensation accordingly. The two parties are the owner and the contractor. The owner decides the type of contract to be used that will get compensation and decide how it will be distributed.

Different types of construction contracts are used by businesses. Choosing a type depends upon the project as well as how the disbursements will be made. With construction contracts assignment help, you will see that there are basically4 different types commonly used in the industry. They are-

What are the types that are commonly used?

  1. Cost Plus Contracts:

In this type of contract, the buyer makes the payment for the materials and all other purchases required for the construction. The buyer also pays for the overhead of contractor along with the profit. This type of contract is mostly used when the scope of the work is uncertain.

  1. Lump Sum or Fixed Price Contracts:

Here, the buyer fixes an amount for the construction activity, and the contractor agrees to complete the project at that price. This type of contract is mostly used when the scope of the project is well defined which thus allows the contractor to make an estimate.

  1. Unit Price Contracts:

This type of contract is the safest as the contractor provides an estimate of each unit to be used in the project. The buyer then agrees to pay the price for the number of units. Both parties benefit from this type of project. The owner incurs the accurate charges, and the contractor knows the correct estimate of the task he performs.

  1. Time and Material Contracts:

In this type of project, the buyer pays for the time and materials that are spent on the project. These types of contracts are used in case of small projects and when the scope is not clear. It becomes risky for the buyer as he/she has to pay for overtime as well as extra materials.

Thus, you can learn and understand better only with construction contracts homework help.

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