Question

Lump sum contracts: A. Are negotiated between the owner and contractor on competitively bid projects. B. Are where the contractor is reimbursed for actual costs of labor and materials. C. Are typically used on engineering projects. D. Are the simplest method of stating the cost of an entire contract.

Answer 1

The contractor under takes the execution o r construction of specific work with all its contingencies to complete it in all aspects with the specified time FIR the fixed amount

The quantities are schedule of different items of work are not provided the contractor shall have to complete the work as per plan within stipulated time for fixed sum

A. Owner is aware of the cost of the project before the project construction starts

it avoid a lot  of details and accounting by the both owner and contractor

Contractor gets free hand to execute works

If this contract is used with design construct method of delivery contractor gets opportunity to use Value Engineering

B. Employment of daily labour on muster roll

In this method work is executed departmently by employing daily labour the attendance of the labour is kept in normal muster roll by the overseer by authorised agent

C.Civil engineers typically do the following:

1.Analyze long range plans, survey reports, maps, and other data to plan and design projects

2.Consider construction costs, government regulations, potential environmental hazards, and other factors during the planning and risk-analysis stages of a project

3.Compile and submit permit applications to local, state, and federal agencies, verifying that projects comply with various regulations

4.Oversee and analyze the results of soil testing to determine the adequacy and strength of foundations

5.Analyze the results of tests on building materials, such as concrete, wood, asphalt, or steel, for use in particular projects

6.Prepare cost estimates for materials, equipment, or labor to determine a project's economic feasibility

7.Use design software to plan and design transportation systems, hydraulic systems, and structures in line with industry and government standards

8.Perform or oversee surveying operations to establish building locations, site layouts, reference points, grades, and elevations to guide construction

9.Manage the repair, maintenance, and replacement of public and private infrastructure

D. EPC system of contracting is being followed by world

It is for time bound execution of projects and minimising the risk to the owners

In this system the contractor is a design a project or work producer all the necessary materials and construct it either through only ever RB subcontracting part of the work and deliver it to employer

The contractor carries the entire risk of project for schedule as well as budget in written for a fixed price and hence this mode of contracting is also called lump sum turnkey

The employer would have to define clearly

1. Scope and specification of the project

2. Quality parameters

3. Project duration and cost