The fixed composite unit contract is the method by which the parties agree to calculate the risk range and the cost of the combined unit price, without adjusting the combined unit price within the agreed risk range. A comprehensive unit price adjustment outside the risk range should be agreed to in the contract. This is what the fixed consolidated unit price contract means。
What is the difference between a fixed unit price and a fixed combined unit price
1. Different risks: a fixed unit contract is a price risk for the contractor and a quantity risk for the contractor. A fixed composite unit price is a range of risk costs
Different composition: the fixed unit price is the full cost of completing the contract list items, including labour costs, material costs, machinery costs, scaffold removal costs, salary allowances and other direct costs included in the contract. The fixed combined unit price includes only labour, materials, use of construction machinery and management fees and profits
3 different costs: the fixed unit price is in favour of b, but if the total price is fixed, the manager of the owner's input during the construction process will be less, less careful and more conducive to cost control, and the fixed combined unit price is agreed in the contract。
What are the characteristics of the fixed gross price contract
The construction price is easy to settle: as the total price is fixed, the contract price is the final settlement price for both parties as long as the contractor does not change the construction content of the contract. For contractors, significant measurement and price savings could be achieved, thus focusing on the pace and quality of work
The risk of quantity and price is primarily borne by the contractor: once the fixed total price contract has been concluded, the contractor will bear the price risk. In the course of the performance of the contract, the contractor bore the risk of a poor bid request and an increase in prices, and the contractor was not awarded compensation. In addition, the contractor should assume the risk of volume work. Only construction drawings and instructions are provided by the contractor. The contractor should calculate the amount of the work at its own cost and then obtain the total contract price based on the combined unit price declared. (b) the contractor bears the risk of leakage and miscalculation of the volume of work for which the contractor is not responsible
(c) few opportunities for contractors to claim compensation: the contractor's chances of claiming compensation have been significantly reduced by the fact that the contractor has specified in the contract that the contract price can only be adjusted by the contractor's change of design, increase or decrease in the volume of work
4. The total contract price is one-off and the total price is preferred。
What is meant by the fixed consolidated unit price contract, which is essentially written in this paper, is a point of knowledge and is intended for reference purposes only。
