Design-Build - is a construction project contract where the design and construction aspects are contracted for with a single entity known as the design-builder or design-builder contractor. The design-builder is usually the general contractor. This system is used to minimize the project risk for an owner and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. Where the design-builder is the contractor, the design professionals are typically retained directly by the contractor.
Cost Plus - Cost Plus contracts are structured as follows: the materials, subcontractors, and all the direct costs associated with the project including labor rates (as described in the contract) are totaled. Then a fee (percentage which includes overhead, indirect job costs and profit) is added together for the final costs.
Hard Bid - A contractor receives a set of plans and provides an estimate for those plans. If errors occur as a result of another party (architect, engineer, designer, etc.), change orders are put into place. A majority of clients usually contract with the lowest bidder. However, a contractor who bids low may underestimate the cost involved in producing a well-built quality project, causing a client to be surprised by costs later on in the project. BRU-CON LLC prefers to be honest about all costs up front and lets the client know what it will cost to do a quality job.
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Types of Project Contracts
The most common methods of construction project delivery include Design-Build, Cost Plus and Hard Bid.
Each of these methods have advantages and disadvantages and all can be used to successfully plan, design and undertake a given construction project.
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