The Standard JCT Contract provides for the works to be designed or detailed on behalf of the Employer, and for the Employer to provide drawings and documentation to define the scope and quality of the works. The Standard JCT Contract is also available in several variations depending on whether the contract is to be a lump sum or is subject to A remeasurement contract is where the work is measured and valued against agreed rates. There is therefore no agreement as to a lump sum, but there is agreement as to the basis upon which the work will be valued. Often, the nature of the work will be known, but the Change is given specific definition within standard forms of contract, for example a Variation, Change of Employer's Requirements or a Compensation Event. Each of these terms is explained in the Traditional Remeasurable Variation Intermediate Building Contract Traditional Adjustable Variation Possible variants of this pricing method include cost plus percentage fee, cost plus fxed fee, cost plus fluctuating fee and target price contracts, which could include a Guaranteed Maximum Price (GMP) slant. The GMP is basically a monetary value which caps payments to the contractor. Arguably, there should be wording in the construction and Answer You say that you have a Lump Sum Contract. The FIDIC Construction Contract Book is a remeasurement contract so the payment provisions must have been changed to provide for the Lump Sum. The answer to your question will depend on the wording of these Lump Sum provisions. A lump sum refers to the single aggregate price a contractor offers to undertake the work and cover all risks accepted by the contractor under the contract. However, don't assume that a lump sum price is a fixed price or that it will be the final price. Delay/disruption. A lump sum building contract usually provides that the contractor bears Standard forms of contract are specifically designed to suit the construction process and they provide a pragmatic approach to dealing with common construction issues. The terms of the contract lay down how risks are allocated between the parties and the principles by which conflicting interests of the parties are settled. Advantages for project owners. The predictability of lump sum contracts is the primary benefit to project owners. The owner can expect the project to be completed within budget and often more quickly so that the contractor can maximize resources and save on labor costs. Lump sum contracts also render little financial risk for owners as the Recently, we had a conflict with the MC regarding our contract. From the beginning, we all knew that our contract was a re-measurable contract but we later found out it was a lump sum contract. We insisted the fact that we had several meetings with them and we even raise a variation and notices. But we were never had a response from them that Something like the site management's salaries. If it is R200k/month and the project's duration is 10 months the time-related portion of preliminaries will be R2million in the bill. If there is a delay on site and the contractor ends up staying there for 12 months, they need to pay R2,4million in salaries. Option G: Term contract (for the appointment of a consultant based on a priced schedule of tasks). Definitions: 1. Activity Schedule - A list of activities (prepared by the contractor), which they expect to carry out while providing the works. Each activity is