- Unit Price Contract
Unit Price Contract is a contract that agrees that the volume or quantity of work with certain technical specifications is still approximate. The budget payment system is based on the results of joint measurements of the work the contractor has actually done. Therefore, this contract system allows for the addition or reduction of jobs. This is based on the results of joint measurements of the work that is needed in the field.
- Lump Sum Contract
Lump-sum is a fixed agreement on the total value of the contract to be paid by the employer to the employer or contractor.
In a lump sum contract, all work risks that occur during the project are considered the responsibility of the contractor. Including if during the project price adjustments for raw materials and other resources occur, it will be the responsibility of the contractor.
- Combined Lump Sum and Unit Price Contract
As the name suggests, this type of contract combines the characteristics of a lump sum contract and unit price. Where the points agreed in the contract are made based on mutual agreement between the project owner and the contractor.
- Percentage Rate Contract
A percentage contract is a contract that agrees that the project owner will pay the contractor according to its expenses for the completed project. This payment includes additional costs (overhead). Overhead costs are the percentage of the value of a particular job.
- Turnkey Contract
The characteristics of a turnkey contract are actually the same as a lump sum contract. The difference is that this contract applies a payment term only once, that is when the project is 100% complete.
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