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Model House Design With Floor Plan

Architecture / June 25, 2018 / .

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The contract documents set out what work must be done, and how, and under what conditions it is to be done. They identify the contractors obligations and liabilities and form the contractual agreement to do the work for the stated price or at the agreed rates. Many if not most financial problems in building originate in inadequate or unclear tender and contract documents, often culminating in disputes between the client and the contractor over what is included in the price for the work.

Insulation is an area where some look to save. Because after all, the reasoning goes, you cannot see the insulation in the walls or the attic once it is complete and who wants to spend money on things you can not see in your new home? Do not make this mistake. Not only will it translate into a lifetime of higher monthly energy bills, but it will lead to everyday discomfort with the home feeling too cold in winter and too hot in summer.

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Many people will choose a new home because they want to be as maintenance-free as they can. They do not want the headache or hassle of failing systems. But when you choose lesser-quality finishes in appliances, tile, flooring, roofing and windows to achieve size, these items, too, will fail sooner than a higher quality item.

The payment arrangements adopted on a contract directly affects the level of risk borne by the contractor. Where the contract is let on the basis of a drawings and specification lump sum the contractor assumes the risk for both the quantity and pricing. In lump sum contacts based on bills of quantities and remeasurement contracts the contractor assumes the risk for the pricing only. With reimbursement contracts the client assumes the risk for the quantity and pricing. The payment arrangement, therefore, directly motivates the contractors efforts to carry out the work in an efficient and economic manner. This in turn has a major impact on the final price paid by the client.


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