CONTRACT ADMINISTRATION

Contract Administration and Changes Issues

Contract Administration and Changes Issues

Contract Administration

The contract for construction of works is the document signed by the Contractor and the Builder. The contract should describe what work must be performed and how it made the payment thereof. Jobs are often complex and involve many operations different, requiring the builder to purchase a multitude of materials and various manufactured items and the use of a wide range of machines and the cooperation of people of different trades. There are many ways to contract the payment of a construction. These differ primarily in the form of payment of the construction is done (Hackett, 2006). Each of them determines the Builder a strategy different from the time of scheduling the process constructive and especially when setting priorities in the implementation of various work units. For easy understanding and recall of each type of contract have chosen some names, although not always used as here expressed, if you give an idea of ??the type of contract to which we refer.

Contract Management

Although it is often the dream of some builders, it is not at all recommended for the interests of the Contractor. This contract is based Administration in setting prices for labor and materials by the builder and under them are billed to the contractor responsible for work performed by the property. Builder's commitment is limited to establishing the amount to be billed per hour of operator or laborer, and for each unit of material used, but not sure in any case the number of hours or the amounts used in each work unit. Of the total turnover of labor and materials consumed by the manufacturer charges a fixed percentage to cover overhead and industrial profit. Therefore the total amount charged for these items increases as volume increases total labor and materials, regardless of the total volume of work performed.

This type of contract required to be reasonably acceptable to the Contractor, Builder close monitoring by the Contractor and is usually a higher cost of work performed that would be achieved with another type of contract. In this Agreement removes all interest in the performance and productivity not only in the constructor, but also in the personal or organization of it. Moreover, the constructor is totally coerced in their work, failing to make a decision, without the prior permission of the Technical Director or the person representing the Contractor, which severely hampers their own programming work (Austen-Baker, 2006). It is advisable therefore this type of contract, except in cases of emergency and always provisional and partial way to achieve the signing of another contract more convenient. Naturally, there are also many types of contracts covering different variants to the above specifications. The contract is basically an agreement between the two contracting parties which sets out the commitments and obligations of each party, and the allocation assumption of risk that may arise. All in a plane equality is also implied that the good faith of both parties at the time ...