There are two ways in which this arrangement can be approached: first, it is possible to establish a relationship which allows the contractor to get in touch with the client when there is a reason to believe that cost will be an issue; or second, that the contractor and client share the potential costs of the project. There is another element key to developing a good relationship between contractor and client. This includes something called the value-engineering approach. The ability to use engineering concepts in order to resolve difficulties that happen on-site is of premier importance.
Design and construct contracts are the fourth types of contract. Since they have fixed prices, they are quite popular in construction. One of the most problematic issues in UK construction deals with quality control as well as the production of the contractor. Problems usually crop up when the design and the craftsmanship do not necessarily blend well. Single point contracts should be distinguished from turnkey contracts (which are the same as design and construct contracts). Within a single point contract, only one contract is in place for the entire length of construction.
However, the contractor who has responsibility for the entire project not limited to and including the design is the turnkey contract. Even though this phrase is used to denote projects that are single contract projects, one of the main aspects of the design and construct contract is the fact that the contractor will control all of the necessary elements of design. Advantages of the turnkey system include that there is usually just one person in charge of being responsible for any kind of problems that should come up regarding the outcomes of the project or the material being used.
The client doesn’ t need to decide from whence the difficulties arrive. Also, this contract allows for a single payment to be made to the contractor, or even a fixed rate of payments at various stages of completion of the project. As long as this is all delicately delineated in writing, there should be no problem as to unit prices for materials and so forth. In this type of contract, there are also advantages for the contractor.
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