Construction Contracts Compared | Lump Sum, Cost Plus, Re-measurable & Target Cost

If you’ve ever had construction or maintenance work carried out in your home, then you already know the different ways you can pay someone. For instance, you can pay someone an hourly or day rate, you could agree a fixed price, or you can pay a unit rate (for instance, you pay for each door to be installed, or each fence panel to be replaced).
And if you work in construction, you know the same applies, and that the contract determines the method of payment. In this video, we’re going to compare the four most popular construction contracts, discuss when they should be used and understand why.
Find out more from our blog post here: www.metroun.co.uk
0:00 Introduction
0:37 Lump Sum
2:06 Cost Reimbursable
2:48 Re-measurable
4:00 Target Cost
5:15 Metroun
#QuantitySurveying #Construction #Infrastructure
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[@joshuamuia9336]

hey, big up to you guys and your great videos. Quick question, are QS's involved in civil engineering projects?

[@Metroun]

Thank you Joshua. We’re glad you like them!
Absolutely. In fact all of us at Metroun started as Quantity Surveyors on civil engineering projects!

[@anthonyyeboah5716]

Simple and well explained

[@Rango7278]

Very well explained. Metron is the best platform to learn Quantity Surveying. Hat's off to Metron.
Please advise how I can contact you for more commercial, quantity surveying questions?

[@Metroun]

Thank you for your comment! It’s always great to hear people appreciate what we do! You can find us on Telegram! @metrounqs

[@niwamanyaalex]

nice content here, is there any reference for this in the FIDIC

[@Metroun]

Thanks for watching! Are you asking if the FIDIC contracts specifically outline the payment mechanisms explained in this video?

[@krik6449]

Nec4 or JST for dealing with lump sum?

[@Metroun]

Both NEC4 and JCT have the option for a lump sum payment mechanism.

[@shimakrocks3]

👍

[@Metroun]

🙂

[@hussainkazmi4829]

Can we say that fidic red book is re-measurable/unit Price

[@Metroun]

FIDIC Red is something of a hybrid as it is generally a fixed price BUT with a variation being triggered if quantities change substantially (10%).

[@kurienillirickal7195]

Fidic Redbook is basically for measure and value