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In order for lump sum damages to be maintained, the damage suffered by the owner must be uncertain or difficult to determine in advance. In addition, lump sum damages must be of a reasonable amount and must not be a penalty. And the delay in construction cannot be due to circumstances that are not controlled by the contractor, such as for example. B changes in work or extreme weather conditions. Or maybe you`re a local entrepreneur who wants to grow your business and take on large construction projects. In any case, make sure you have a written agreement to serve as a plan until construction is completed to repair the folds. There are three main types of production orders identified according to the mechanism for calculating the amount to be paid by the employer: lump sum contracts, measurement contracts and refundable contracts. The most frequently used are those created by the American Institute of Architects (“AIA”) and ConsensusDocs. At one time, the Associated General Contractors of America maintained its own forms; However, these have been grouped together in ConsensusDocs. This contract is based on units and not on a single price.

Payment is calculated at a set rate for each item, for example. B cubic metre for specific periods of the quantity used. “The contractor gives an owner a price for a task or a certain volume of work, although at the time of entering into the contract, the parties may not know the actual number of units of work to be performed.” [14] Therefore, the owner does not have a specific final price until the project is completed. [19] This type of contract is normally used when the workload cannot be determined, for example.B. in the case of civil engineering projects that are the excavation of soil and rock. .