Remove Budget Remove Change Orders Remove Overhead Remove Plans
article thumbnail

#136:  Fixed Price vs. “Cost Plus” Contracts: Some Considerations

NH Construction Law

His price will typically be set to cover overhead costs and a reasonable profit. If quality is an owner’s priority, some think that “cost-plus-a-fee” contracts – reimbursement for labor and materials expenses, plus either a percentage or a fixed amount for overhead and profit – are the way to go.

article thumbnail

LEAN construction cost estimating

Job Order Contracting

Introduction – LEAN construction cost estimating, planning, procurement, and project delivery, drives optimal performance for the numerous repair, renovation, maintenance, sustainability, and new construction projects encountered by real property owners, facilities managers, and their service providers.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Job Order Contracting - Untitled Article

Job Order Contracting

Eighty percent (80%) of all construction projects are late, over-budget, or incorrectly completed. Currently available robust LEAN construction estimating, procurement, and delivery processes, services, and tools, make it possible to consistently deliver quality projects on-demand, on-budget, and on-time.

article thumbnail

Job Order Contracting - Untitled Article

Job Order Contracting

Meeting these requirements can be a significant challenge when eighty percent (80%) of all construction related projects are late, over-budget, or incorrectly completed. Thus costs estimates should be prepared WITHOUT OVERHEAD and PROFIT. Remember that a cost estimate is NOT the same a price estimate.

article thumbnail

How to Avoid Running Out of Cash on a Construction Project

Levelset

By predicting your cash requirements ahead of time, you know just how much work you can afford to take on and budget accordingly. Poor planning. Even if you budget your expenses and analyze your cash flow, unexpected expenses may arise, or you may have missed something in your initial planning. Stuff happens. Overbilling.

article thumbnail

Data Scientists Reveal 5 Surprising Construction Insights to Manage Risk 

Autodesk Construction Cloud

An example of a data point might be the number of overhead mechanical racks installed on the job that day, or logging the root cause of a safety incident. This information eventually translates into knowledge , like figuring out the average time it takes to install an overhead rack based on information collected from multiple jobs.

Risk 52
article thumbnail

Every Owner Should Implement JOC – JOB ORDER CONTRACTING – for Renovation, Repair, Sustainabilty, and Maintenance Construction Projects

Building Information Management

is equally responsive to the needs of the owner and contractor to get the work done on-time and on-budget, 2.) Job Order Contracting is an integrated, collaborative construction project delivery method with a 20 year+ track record. Reduced or Eliminated Change Orders. fosters trust and mutual respect, 3.)