Which Type of Building Contract Should I Use?

Did you know there are many different types of building contracts that can be used for a building project?

Choosing the right building contract can save you a lot of money, time and stress.

We all know about the typical one, the lump sum or fixed price building contract. This is the traditional method used for project delivery over the past and presently but it is not the only one.

It may also be the wrong one for the project you are thinking of undertaking!

In total there are five (5) different forms of building contracts:

1. Lump Sum/Fixed Price (Traditional method);
2. Design and Construct;
3. Construction Management;
4. Project Management; and
5. Public Private Partnerships / Strategic Alliances

Each of these forms of "agreement" does different things, provides various opportunities and have differing risk profiles.

Subject to what it is you are intending to develop on your land, the time-frame you have to deliver it, your budget, and your in-house capabilities and resources to manage your project, you may wish to consider the varying advantages and disadvantages of each method of delivery.

In upcoming posts I will detail some information in relation to each of these forms of delivery for you to consider.

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