The following are the varied varieties of contracts, for execution of engineering works:
- Item rate contract
- Proportion rate contract
- Lumpsum contract
- Labour contract
- Materials offer contract
- Piece-Work agreement
- value and proportion rate contract
- value and fastened fee contract
- value and unsteady fee contract
- Target contract
1. Item rate contract :
For this contract, contractors ar needed to quote rates for individual things of labor on the idea of schedule of quantities furnished by the client’s department.
2. Percentage rate contract :
During this type of contract, the client’s department draws up the schedule of items according to the description of items sanctioned in the estimate with quantities, rates, units and amounts shown therein.
3. Lump sum contract :
In this form of contract, contractors are required to quote a fixed sum (lumpsum amount) for execution of a work complete in all respects i.e., according to the drawings, design and specifications supplied to them with the tender within the specified time.
4. Labour contract :
This is a contract where the contractor quotes rates for the item work exclusive of the elements of materials which are supplied by the client’s Department.
5. Materials supply contract :
In this form of contract, the contractors have to offer their rates for supply of the required quantity of materials , inclusive of all local taxes, carriage and delivery charges of materials to the specified site within the time fixed in the tender.
6.Piece-Work agreement :
As the name signifies the piece-work agreement, it is that for which only a rate is agreed upon without reference to the total quantity of work to be done or the quantity of work to be done within a given period.
7.Cost plus percentage rate contract :
n tendering for work on a “Cost Plus” basis, the contractor is paid the actual cost of the work, plus an agreed percentage in addition, to allow for profit.
8.Cost plus fixed fee contract :
In this type of contract, the contractor is paid by the owner an agreed lump-sum amount over and above the actual cost of work.
9.Cost and unsteady Fee contract :
In this sort of contract, the contractor is paid by the owner the particular value of construction and AN quantity of fee reciprocally variable in keeping with the rise or decrease of the calculablevalue in agreement 1st by each the parties.
10.Target Contract :
This can be the kind of contract wherever the contractor is paid on a undetermined proportion work performed underneath this contract. additionally, he receives a proportion and or minus on savings or excess settled against either previous a previous in agreement estimate of total value or a target worth got hold of by activity the work on completion and valuing at prior in agreement rates.