The industry knows many variations of contracts to allow tailoring of an agreement to the project circumstances to protect both parties in a project.
The type of contract choosen depends largely on the projects state at the bidding state. If the project has only a vague outline a "Cost plus fee" may be more suitable than a "Lump Sum Fixed Price" contract. Likewise if a project has detailed drawings and defined quantities take off an "Admeasurement Contract" will be better than "Cost plus fee".
All depends on the circumstances of the project and the experience of the contracting parties.
What comprises the CONTRACT is the most significant question.
Normally the Contract Agreement should contain the following:
List of Drawings
The Tender documents
The Offer tendered
The Letter of Acceptance
Two basic types of contracts exist. These are:
[a] Price based Contracts
[b] Cost based Contracts
In todays world multiple qualified bodies represent the joint needs of the parties to a construction contracts to avoid ambiguity and drawn out litigation or arbitration if grievences between the contracting parties need to be settled.
A well known set of contract standards are published by FIDIC and JCT. Many government entities and major corporation have their own standards with some of them closely modelled to either one of the aforegoing internationl bodies standard contracts.
We are very much aware that these international standards are well thought out but some projects are just not large enough to sustain the required manpower to maintain the operational requirements. In these cases the wording of these contracts and the inherent terminology are the stepping stones to draft that contract to suit the project.
Particular attention should be nrought by the parties to the aspect of enforcing court and or arbitration judgements. In todays world multiple qualified bodies represent the joint needs of the parties to a construction contracts to avoid ambiguity and drawn out litigation or arbitration if grievences between the contracting parties need to be settled.