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What is a contract sum adjustment?
The contract sum is the price agreed with the contractor and entered into the contract. The agreed contract sum should be calculated and checked very carefully as errors are deemed to have been accepted by both parties. As a result, contracts generally allow for the contract sum to be adjusted, for example: Variations.
What is a contract sum analysis?
A Contract Sum Analysis (CSA) is an alternative pricing document to a Schedule of Works (Sow) / Bill of Quantities (Box). The Contract Sum Analysis is prepared following a review of the Employers Requirements. Subject to any negotiations, it may or may not be amended prior to execution of the Contract Documents.
What is a contract sum?
The contract sum is the price agreed with the contractor and entered into the contract. The agreed contract sum should be calculated and checked very carefully as errors are deemed to have been accepted by both parties. As a result, contracts generally allow for the contract sum to be adjusted, for example: Variations.
What is a CSA in construction?
CSA stands for Civil/Structural/Architectural (engineering and construction)
What is a pricing document?
Tender pricing document. The tender pricing document sets out the way in which the design team and client wish to review the breakdown of the overall tender prices provided by tendering contractors. It is effectively an priced bill of quantities. Form the financial basis of the tender report.
What is contract value in construction?
A contract value is essentially the price tag that a government contract is worth in terms of dollars. You can expect a contract for bridge construction, for example, or defense equipment and aerospace to be quite substantial.
How does lump sum contract work?
A lump sum contract (or stipulated sum contract) is the traditional means of procuring construction, and still the most common form of construction contract. Under a lump sum contract, a single 'lump sum' price for all the works is agreed before the works begin.
When would you use a lump sum contract?
When to Use This Type of Contract A lump-sum contract is a great contract agreement to be used if the requested work is well-defined and construction drawings are completed. The lump-sum agreement will reduce owner risk, and the contractor has greater control over profit expectations.
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