Architecture / June 19, 2018 /
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.
The quality of the building will express the clients ambitions for a prestigious development. This may range from a top quality building with minimal maintenance requirements where all matters relating to the design are controlled by the design team to developments such as retail or industrial process where the detailed design is not critical and can be undertaken by the contractor. It may be essential to use high quality materials in conservation projects or where planning conditions have been imposed. High standards of craftsmanship will also be required on alterations and extensions to listed or historic buildings.