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What is the best type of "contract" considering that you are a supplier, a contractor and a consultant between the owner, if you are free to select?

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تم إضافة السؤال من قبل Joefil C. Jocson , CEO/President , Dyas Construction and Management Consultants
تاريخ النشر: 2013/09/09
G S
من قبل G S , Senior lawyer , National Union of Attorney at Law of Romania

When you have a high degree of certainty of final price and time to build required, when the Contractor provide the design specification and the Employer/Owner want to have little involvement, the lump-sum turnkey type of contract may be suitable. Keep in mind that this type of contract is mostly used for a power plant, a factory or similar and more risks are allocated to the Contractor. Also, in lump-sum turnkey type of contracts the project is organised strictly on a two-party approach without any Engineer or Consultant beeing involved.

In the case when the Employer or his Architect may have done some or most of the design, with suitable modification regarding conditions of contract regarding design responsibility - the Conditions of Contract Turnkey Projects may be chosen.

If the Employer provide the design and the intention is to equally allocate the risks, the recommended type of contract is FIDIC Red Book conditions of contract for construction. The Contract is administer by the Engineer who is appointed by the Employer.

From the supplier side, you have no contractual relation with Employer/Owner, only with the Contractor, so you can choose whatever type of commercial contract reserve your interest you can agree with the Contractor.

Saiman Biswal
من قبل Saiman Biswal , Civil Consultant/Contracts Engineer , Arab Engineering Bureau

Lumpsum Turnkey Contract

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Given the choice and subject to the situation Cost plus will be the way forward.

المزيد من الأسئلة المماثلة