|
Provided by: Lorman Education Services Pros and Cons of Cost-Plus vs. Fixed Price Contracts |
 |
Training
Provided by Lorman Education Services
nLump sum and cost-plus contracts for construction projects offer different protections and incentives for both owners and contractors. With today's economic pressures, it is important that project participants know the factors to consider in choosing between these pricing approaches and to understand the advantages and disadvantages to each.
n
nThe current economic situation has imposed great strains on the construction market. Every project and every industry participant has felt the impact. In this environment, it is critical for owners and contractors to understand how the adverse economic climate may impact the legal rights and duties that apply to a construction project.
n
nLearning Objectives
n- You will be able to recall factors to consider in choosing between lump sum and cost-plus contracts.
n- You will be able to compare advantages and disadvantages of lump sum and cost-plus contracts.
n- You will be able to specify current economic climate on the legal framework on financing, payments, suspension and termination, bankruptcy and defaults.
n- You will be able to define costs vs. rates.
|
|
||||||||||
Pros and Cons of Cost-Plus vs. Fixed Price Contracts
Agenda
- Cost-Plus Contracts vs. Lump Sum Contracts
- Considerations
- Completeness of the Drawings and Specifications
- Schedule - Fast Track?
- Design-Bid-Build or Other Arrangement
- Competitive Procurement or Negotiated
- Budgetary Constraints
- Pros and Cons of Lump Sum Contracts
- Price Certainty for Owner
- Risk of Cost Overruns on Contractor
- Simpler Payment Procedures
- Cost Savings to Contractor
- Changes - Added Scope or Bid Error?
- Pros and Cons of Cost-Plus Contracts
- Less Price Certainty - Without a GMP
- Better for Incomplete Drawings and Specifications
- Transparency on Cost Savings
- More Complex Payment Procedures
- Defining Costs - Costs vs. Rates
- Impact of the Current Economy on Lump Sum and Cost-Plus Pricing Options
About The Training Provider: Lorman Education Services
Lorman Education Services - Lorman Education is dedicated to providing cost-effective training opportunities that meet the needs of our members and enhance their skills, knowledge, and competencies.
Please use Priority Code 16175 when registering.
Lorman Education Services began offering continuing education seminars in 1987.
Lorman Education is dedicated to providing cost-effective training opportunities that...
