What Are The Concepts Of Construction Contracts?

2010/11/25 13:38:00 31

Construction contracts refer to

build

One or more contracts that are closely related to design, technology, function, and end use.

Among them, the assets built mainly include buildings, roads, bridges, dams and other buildings, as well as ships, aircraft, large machinery and equipment.

The construction contract is different from the general material purchase contract and labor contract, but has its own characteristics.

(1) first, the buyer (i.e. the customer) and the subsequent marked assets, the cost of the construction assets has been determined at the time of signing the contract.

(2) assets have a long construction period and are generally required.

Stride across

One accounting year, some for several years.

(3) the assets built are large and costly.

(4) construction contracts are generally non cancellable.

contract

。

A fixed cost contract refers to a construction contract that determines the price of a project at a fixed contract price or fixed unit price.

The cost plus contract refers to the construction contract based on the cost agreed upon by the contract or by other means, plus a certain proportion or fixed cost of the cost to determine the project price.

The main difference between fixed cost contract and cost plus contract is that the undertaker of risk is different.

The risk of the former is mainly borne by the contractor, and the latter is mainly borne by the employer.