A conditional contract is an agreement that is used when no service could be provided at the time the contract was signed. It sets a date when benefits will be provided if certain conditions are met. The difference between this type of contract, which is a cost-based contract and a lump sum contract, is that in the maximum guaranteed price (GMP), if it is a specified price contract, it is a fixed price contract, and the contractors retain the savings on the costs of the races and there is no obligation for them to return them to the owners. However, this savings can be shared by both the contractor and the owner. [12] Another difference is the status of the plans. The lump sum contract can be used if the owner has a complete set of construction plans, specifications, etc., otherwise the maximum guaranteed price (GMP) will be preferred to compensate for this defect. If the cost is used, it is best for the owner to determine the maximum guaranteed price in order to avoid other costs and contractors needed to provide the principal contribution to the owner on project costs. [13] A national construction contract is a contract comprising all work that should be performed for the construction of an existing or ongoing commercial or residential building in a given country; not foreign or international. In the lump sum contract, all work is carried out according to plan and specifications by the contractor for a specified fixed amount, in accordance with the agreement. The owner provides the necessary information and the contractor calculates a certain amount. This contract is appropriate if the number of items is limited or if it is possible to develop exact amounts of work to be done. Detailed specifications of all work points, detailed plans and drawings, deposit, penalty, progress and other contractual conditions are included in the Convention. Although it is a lump sum and a planned contract, the contractor is paid at regular intervals of 2 to 3 months after demsol work on the basis of a certificate issued by the competent engineer.
A planned price is included in the agreement for the payment of additional items. A construction contract is a reciprocal or legally binding agreement between two parties on the basis of guidelines and conditions recorded in the form of a document. The two parties involved are one or more landowners and one or more contractors. The owner, often referred to as an “employer” or “customer”[1], has full authority to decide what type of contract should be used for a specified construction period and to set legally binding conditions in a contractual agreement. [2] A work contract is an important document because it describes the extent of the work, risks, obligations and legal rights of the contractor and the owner. The completion of the section refers to a provision within a work contract that allows different completion dates for different construction phases. This is common for large projects that end in stages, so the client can take possession of the finished parts, while construction work continues on others. [25] Duke and Carmen stated: “Cost-plus with GMP offers a cap on total construction costs and costs for which an owner is responsible.