The dream of many people is to construct their own house or construct a building for their commercial. Always being an owner is the better option when compared to be in a rented place. This is the feeling of many people because when they have their own place they need not worry about anything. If the place is a rented one then they have to be dependent on the owner. So in order to overcome such situation many of them build their own house or office. When it comes to construction selecting the right construction company is the main task. Once if the requirement of the person is matched with the service provided by the company then they can choose the company. But also they have to check many other criteria of the company. The company must also be a reputed company so that the client can enjoy the management benefits.
There are many types of construction contract in which the owner and the construction company gets bonded. Construction contract is a legal binding agreement for the owner and the construction company. The contract is classified based on the duration, quality and other specifications. This contract is made for the specific needs of the client and the product used in the project.
- The lump sum or fixed contract type will have a fixed price for all the construction materials. The construction company includes the incentives and benefits if the contract is termination before the completion stage.
- The other type of contract is the cost plus contract in which the client pays the cost for the materials purchased and other actual payments. They need not pay any amount in as lump sum. In this case the client pays the cost plus the fixed percentage or the cost plus the fee.
- So this type of contract is beneficial for both the construction company and the owner who is going to construct the building.
- The next type is the time and material contracts this contract is signed when the project is not very clear. In this type the contractor and the owner agree to work on hourly basis daily. So they work based on that and also pay only for the work done.
- But if the construction company which they have selected is a reputed and good company. There will not be any chance to have doubts regarding the project. The http://fandhconstructionltd.co.uk/ is the site which is giving the details regarding the contracts.
- There is difference in the style of construction based on whether it is the commercial building or a residential building. They decide the plan according to the building.
So before starting the work they have to evaluate all the documents given by the construction company and then they have to proceed further.