Ahmed want to construct a house. He engages an architect-cum-builder. What kind of contract should Ahmed go for to have minimum risk for himself?

Mr. Ahmed shall get the layout, plan and design and ensure his preferred choice and functionality of the house.

Then he shall get the itemised unit cost and total cost of all items with detailed specification of construction materials, equipment to be used, security issues, and workmanship with reference to some approved international standard. Then to arrive at a total cost of building.

An arbitration clause as per law of the country must be inserted to protect the interest of both the parties.

Thereafter, he must negotiate completion time and payment terms.

Finally, He shall put a supervisory clause that work must be done as per agreed specifications. Any changes in design and cost during construction period must be agreed by both parties in writing.

So, basically it should be Lump Sum(fixed price) contract with provision for changes as agreed by both parties during construction.  

 

My opinion is that the right answer is:

a

Turn Key Lump sum Contract.

In Lumpsum ( Firm Fixed Price ) type of contract Ahmed has minimum risk for himself. 

A is the suitable answer. Thanks

A.  Lumpsum ..................

Option A is best choice........

Option A............... lowest risk

B. Cost plus fixed fee - This contact will not bound him in selection of material, he can choose whatever fits to his budget. Contractor fee will be fixed so there is no risk for unwanted price increase 

B. Cost plus fixed fee. So that the owner can have confident in his own material and the architect don't need to worry about quality of material. He can work freely with best effort.

Conditions on an Architect are different from conditions implied on a project manager consultant or a contractor. Generally design drawings are always subjected to change orders either due to the request of the client or the welfare of the project, accordingly if the designer is engaged in the project management it would be solution B but if he wasn't it can be solution A with several clauses protecting the client from any aspect of misconduct.