The main construction civil project parties are the owner, the engineer and the contractor. The owner requirements are intimated to engineers, who in turn, guide the owner in the mode of construction civil, keeping in view the minimum safety requirements, shortest possible period of completion and minimum cost of construction civil. A good proposal can be achieved by a team of construction engineers, architects, general contractor, special contractor, manufacturer, materials dealers, equipment distributors, government bodies and agencies.
The construction civil engineers primary duty is to exercise quality control during the execution of the project. Depending on the nature of the work, a number of types of contracts are used in the building industry. In projects where execution of work is to be carried out by the use of construction civil equipment, the following three types of contracts are more popular.
1. Lump sum Contract
In this type of contract all the details of the project have to be properly designed and evaluated before the contractor is asked to tender his rate. Hence this is the best type of the contract. In this contract the owner pays a fixed sum of money for the complete project. Thus, if the same type of construction is to be repeated time and again and full details of the work are available then lump sum contract is most suitable.
2. Unit-Price Contract
In this contract, the contractor is asked to execute the various items of work specified in the schedule at the tendered rates. The contractor receives payment at specified intervals during the execution of the work depending upon the value of work executed. This type of contract is most common because it is possible to prepare approximate quantities of various items of work on the basis of complete measurement of similar structures.
3. Cost Plus a Fixed Percentage Contract
In this contract, the contractor is required to execute the work as per plans, specifications and drawings which form the part of the contract bond. The payment is made to the contractor on the basis of on-site costs incurred by the contractor.
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