scopeeconomics
Contract typesUnderstand the basis
Understand the basis
of the price
The payment mechanism changes what an estimator needs to test. Start here, then check the form and project amendments.
Lump sum
Can you explain everything inside the price?
An agreed price for the defined obligation, subject to the contract provisions for changes and adjustments.
01Defined obligation
02Priced scope
03Agreed adjustments
04Payment assessment
Conceptual sequence. Check the actual assessment and payment provisions.
Standard formsThe family name
The family name
is only the start
Pricing basis and design responsibility are separate questions. Confirm the form, edition, contract data and amendments before drawing conclusions about risk.
Read the estimating guide ↗NEC4 Engineering and Construction Contract
| Option | Basis | Pricing document |
|---|---|---|
| A | Priced | Activity schedule |
| B | Priced | Bill of quantities |
| C | Target | Activity schedule |
| D | Target | Bill of quantities |
| E | Cost reimbursable | Check contract provisions |
| F | Management | Check contract provisions |
JCT contract families
JCT provides forms for several arrangements, including Standard Building, Design and Build, Management Building and Construction Management. Use the selection guidance to examine the proposed form.
JCT selection guidance ↗A guide to estimating implications. Confirm the executed contract and seek project-specific commercial advice where interpretation is required.