Fixed Price/ Lump-Sum Contract - ANSWER It stipulates a fixed price in the contract, which includes, the contractors' fees, overhead, and profits, independent to the final cost of the project. The contractor is not liable for costs for other items such as labor and materials.
An agreement that set...
CMIT Level 1 Exam - Chapter 2 - Contracts
Agreements
Fixed Price/ Lump-Sum Contract - ANSWER It stipulates a fixed price in the contract, which includes, the
contractors' fees, overhead, and profits, independent to the final cost of the project. The contractor is
not liable for costs for other items such as labor and materials.
An agreement that sets the fee that will be paid for a defined scope of work regardless of the cost or
effort to deliver it.
Cost Plus Fixed Fee - ANSWER a cost-reimbursement contract that provides for payment to the
contractor of a negotiated fee that is fixed at the inception of the contract. The fixed fee does not vary
with actual cost, but may be adjusted as a result of changes in the work to be performed under the
contract
Time and Material Contract - ANSWER a contract where the contractor is provided reimbursement for all
their time at an fixed hourly rate for equipment and material(including subcontractor costs).
The contractor also receives a reasonable allowance for overhead and profit.
Unit Price Contract - ANSWER A contract in which payment is based on a contractor's quoted price per
unit of work performed and the owner's measurement of the total number of such units installed
Guaranteed Maximum Price (GMP) - ANSWER The contractor or construction manager guarantees the
owner a fixed, maximum price.
CMAA CM-AT-RISK Contract Characteristics - ANSWER - CM's extensive professional services during
design
- Self-perform work only if low bid, owner approves, and a separate GMP contract is signed
- Owner may reject GMP CM may continue as agent
- Owner may require additional services after GMP is signed
AIA A133,B133 - ANSWER - CM's limited professional services during design
- CM may self-perform work at their own discretion without submitting bids
- No option for owner to reject GMP and continue CM's services
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