Types of Contracts in Construction

This article discusses the various types of contracts in construction, including lump sum contract, cost plus percentage, project management, and more. It explains the characteristics and uses of each contract type, as well as their advantages and disadvantages. The article also provides insights on choosing the right contract for a construction project based on its scope, complexity, and other factors. Whether you're a builder or a client, this article will help you understand the different contract options available in the construction industry.

CIVIL ENGINEERING
By Name
Course
Instructor
Institution
Location
Date

Question One
Types of contacts
Lump sum Contract
This is a kind of contract that has a fixed price for all the activities that are related to the construction. The contact is normally known
to include the penalties for the late termination or the incentives for the early termination. The application of the Lump sum contract
can be done in the cases where the project of the construction has a clear scope, a drawing of the construction and a proper outlined
schedule. This is common in the case of small and simple projects. In some cases, the owner could possibly have the orders changed
for work that is unspecified while at the same time take very high risks for taking back the credit for the work that is not completed.
Lump sum subject to rise and fall specifications.
A contract of the lump sum that has a rise and fall clause is that type of contact in which the risk of varying the cost can be possibly
shared with the client as opposed to being borne solely by the construction team who is the builder. This is different from the cases of
the industrial practices whereby the changes in the cost of the building cannot be passed to the buyer of the home (Sullivan 2016). It
is, however, important to note that under S13(1) of the contracts of home building Act, the clauses of rise and fall are outlawed for

those specific contracts that are valued at less than a set amount. The present value of this figure is roughly $500000.The liability of
tye builder who enters into such an agreement is equivalent to $ 10000 as a fine. The clauses of rise and fall can be used for those
contracts that are over the threshold (Corbin 2018).
Cost plus percentage
The actual purchases, costs and other expenses that are known to be part of the construction operations should be incorporated into
this particular type of the contract. The contract is known to have very clear information about a specific percentage of the labor as
well as the material costs. This can be treated both as direct and indirect to cover the profits and the overheads of the contractor. This
particular type of contract is known to be very popular in the cases where the definition of the scope is not clear. The attention of the
owner should, therefore, be focused on how much the owner will be billed in order to have the interest of the owner protected. This
will also help to avoid other charges that are unnecessary. Meanwhile, the owner should take a lot of risk on the supervision and
tracking of the process of construction. The contractor however takes less risk.
Project management
The management of the project is all about using the skills and tools to meet the quality costs, specific time and the objectives of the
resources for a particular project. The builder is more likely to succeed by planning, defining, monitoring, executing the whole
program of building as a strategy.

Schedule of rates
This is actually a self-explanatory term in which there is a provision of the hourly rates for every discipline. The billing of the client is
as per the hours worked. This can be for every week, month, year etc. This can be one of the best options as a contract where the scope
has not been understood fully or there has been no finalized program on the same. There is no risk involved from a contractor's point
of view when working on rates that have been scheduled. All the hours are fully paid, in some cases, the final costs of the projects are
cheaper upon completion while using the rates that have been scheduled.
Sub-contract
A sub-contractor: A business or a person who has a contract not as an employer but as an independent contractor may decide to
dedicate part of the work of the services to another contractor to be performed. This kind of the individual who takes a portion of the
work is called sub-contractor. The participation or the involvement of sub-contractor is common for the case of the bigger projects.
The type of contract that is signed by the sub-contractor is called a sub-contract. Some of the activities that are involved in the sub-
contracting include plumbing work, painting, electrical roofing, cement work etc. (Lando 2013).
In the case of project 1, if I were to act as a builder, I would prefer the use of Lump sum contract with the subject of rise and fall as
specifications. Considering it is just a single house dwelling that has 2 levels of dwellings, it will basically take a period of less than 2
years to have it completed. The project, however, has very detailed specifications and drawings which make the estimation of the cost

to be quite easy. Also in the clauses of the fall and rise contract in project 1 are already outlawed for such contracts that are less than
$500000.This particular value meets the requirements that have a connection with the law itself.
Question Two
Variation: This term is sometimes referred to as change order or variation order or variation instruction. It refers to the alteration in
the scope of the construction contracts that may take place in the form of addition, omission, and substitution from the original outline.
It is advisable to note that all the projects of construction vary from scope, origin design and definition. Such variation is as a result of
the factors such as statutory, prospects and geology.
Prime cost item:
A prime cost item refers to the amount of money which is normally included in the contract sum to be used in purchasing a specific
item like tiles, taps, and fittings of the bathroom and even handle. The accepted amount which should be included at the point of
signing the contract is normally agreed. The selection of the specific items to be purchased is normally done in the later stage. As per
the provisions of the home buildings contract Acts of 1991, the estimation of such items costs should be reasonable by the builders
and they should never be understated.
Provisional sum:

A provisional sum refers to that amount of money which is normally included in the contract sum. This money is meant to cover the
materials and work. The extent of this coverage cannot be determined at the point of entry into the contract. In a practical aspect, the
builders will include a PS for the costs of the work. An accurate cost of the work is estimated by the builder. Because of the
unforeseen events which may take provisional sum; the amount must be added to the contract sum.
Extension of time:
In case delay of the work is not the fault of the contractor. the law of construction allows for the extension of the period of
construction. The contractor should respond through a written notice to the administrator of the contract describing the events that are
responsible for the same changes. These may include variations, adverse weather, and statutory changes. The extension time will be
granted in case the administrator of the contract accepts the events covered in the letter notice.
Liquidated damages
In the case of the contracts of the building, the liquidated damages usually result from the failure of the contractor to achieve practical
completion by the set date as illustrated in the contract. The provision of the contractor to pay the client is within the law as this will
be considered as the breach of the contract. This particular provision should not be mistaken for penalties but rather predetermined
damages that are normally set when the contract is being signed. The basis is usually drawn from the calculations of the possible
losses that the client may incur in the event that the contractor fails to meet the demands of the construction.

Possession of the site
The law of contracts normally grants the contractor to have exclusive possession of the site of construction until the time of
completion of the project. This will only take place during the handover meeting where the possession of the project is reverted to the
client. In the contract, it may be possible to state the date for this exercise of possession transfer and if that is not done then a
reasonable signing date and time may be sought.
Cooling off period
After the reception of a signed copy, the client has five business days to change his/her mind as far as the building contract is
concerned. This is referred to as the cooling off period. This date starts from the time the client received the signed copy regardless of
the time it was signed. In the event that the contract failed to include notices of cooling off periods, the client has up to seven days
after realigning the contract ought to have included the same notice. Withdrawal by the client from the contract is thus allowed
(Macneil 2017).
Defects liability period:
The period of defects liability starts upon certification of the practical completion. This period will last for a period of about 6 to 12
months. During this particular period, the client will be required to report any defects that may arise to the administrator of the
contracts (Llewellyn 2019). The administrator will be required to confirm whether they are just facts issues of maintenance or they are

real defects. In the event that they are considered to be defects, there will be the issuance of an instruction to the contractor by the
administrator to have corrections made within a reasonable time. The period of the defects liability should never be treated as a chance
to have problems corrected but instead, the contractor may be recalled to have defects corrected
Retention:
Retention refers to a percentage preferably 5% of the certified amount as due to the contractor as per the certificate of interim. It is
normally deducted from the amount due and later retained by the client. The retention normally serves to ensure that ate contractor
meets all the requirements of the project. The application of retention may be extended to the sub-contractors that have been
nominated the main contractor is usually capable of applying retention to the domestic sub-contractors.
Progress claim
The preparation of the progress claim is normally done by the builders before it is submitted to the proprietor. The major purpose of
the progress claim is to claim for the progressively increasing work value prior to the date of completion. In the industry of housing, it
is very common to agree on the completion of a construction stage during the period of submission of the claim it is common for the
parties to have a collective agreement on the value of the claim before the contracts are signed.
Question Three
In order to have all the parties interests protected, the construction contracts must have the following features:

Address, signatures and full names of both parties
The crucial information of the involved parties will confirm the individuals entering the contract. Use of the appropriate signatures
will confirm that all the parties are legally bonded to the contract document voluntary
Scope of work
This particular area serves to communicate in details the kind of the services to be offered including a description of the quality of the
materials
Payment terms and the project costs
All terms of payments and costs should be clearly stated here.
Schedule of work
This involves the establishment of a clear notice to proceed date, the start date of the construction and final completion date of the
construction work. This should be created clearly in the separation of the work days and calendar days.
Authority

It is in this particular area that the communication regarding who is responsible for which specific task in the period of construction is
done. That is why it is very important for the establishment of an authority that will be making legally binding decisions prior to
project initiation.
Question Four
Part a
I. The client could not pay for the construction project after going insolvent: For example, if the client goes bankrupt and can no
longer afford to pay for the construction of the project itself, this is considered a breach of contract. The builder can possibly
terminate the contract.
II. Abandoning the site: The client abandoning the site through negative performance such as being unreachable through all
means or just announcing clearly. In this case, the builder has the right to terminate the contract.
III. Employment of other builders to continue with the work: In the event that the client has employed other workers to perform
the same task in the same site. In this case, the builder will have to exercise contractual right in the termination of the contract.
Part b

i. The original scope of the work has been changed by the builder: In the period of the construction, the builder has not followed
the drawing that has been provided by the clients. For example, the builder may decide to change the scope of the work thus
breaching the contract and the client can possibly terminate the contract
ii. Failure to rectify or remove a defective work: For example, the builder deliberately refuses to fix a tile ceiling that has been
wrongly installed in the public area. In this case, the client will have all the rights to terminate the contract.
iii. A significant delay in the project completion and cause of bigger damages: The builder predicts to finish the project for a long
time that the client is not willing to wait or the builder could not complete the project in time without reasonable causes.
Question Five
All documents
 Instruction forms: This particular form contains the instructions that have been issued by the architecture.
 Time of extension Claim: Ideally the contracts of the construction have specific provisions that entitle the contractor to
extension of time in the event of occurrence of a particular event which consequently leads to the delay of the work. In case the
responsibility rest with the employer like force majeure or very harsh conditions of the climate, the contractor will be entitled
to a time extension. This, however, will be dependent on the specific conditions and terms of the contracts. In the cases where
the contractor is responsible for the messes then the responsibilities rest with the contractor himself.

 Request for information: This is normally regarded as a standard document whose primary aim is to have written information
collected regarding the builder's capability. The format of this document should allow for comparison of various parameters.
This document alongside other documents like a request for the proposals in the gathering of basic information on the potential
builders.
 Preliminary Building Agreement: Such agreements describe the works in preparation for the construction of homes includes
specification and the design which may be regarded by the builder as being outside the scope.
 Progress payment certificate: In this particular certificate the information such as payments made during the work progress
under the terms and condition of the contract, completion percentage, and basis of the incurred costs are included. The term,
however, does not include the payments for partial deliveries or the payments on termination claims of the contract.
 Practical Completion Notice: This particular notice is provided to the client by the contractor notifying that the project has
reached the practical stage of completion (Llewellyn 2018).
 Defects document: This particular document has a list of the omissions or defects that have been collectively allowed by the
contractor and the owner. The documents communicate further when the contractor is likely to communicate these issues. The
document must be signed by the contractor and the owner in duplicate.
 Contract Information Statement: This contract information statement has information regarding the general nature to inform
the owner about the management of the construction contract and processes of domestic building. This document, however,
should never be relied upon for the purposes of legal advice.

Question 6
Construction Contract
The type of construction contract chosen for work is a Lump sum. The parties entering the contract are Mr. and Mrs. Owili (Owner)
ARUBA CONSTRUCTION LTD (Contractor). The effective date of this contract of construction will be the last date indicated in the
signature:
This particular contract of the construction along with the documents that have been incorporated as referenced herein indicates the
conditions and terms that have been agreed to be between the parties which relate to the 2 level house constructions by the contractor
for the client.
CONDITIONS AND TERMS
Article 1-Property and Parties
1.1 The client is MR and MRS Owili regarded as a residential owner that is private. They are the property legal owner on which the
construction will be done as per the contract and whose contact information is as follows
Address line of the owner 310
Rongo
Phone number—0718884711

Email of the Owner [e-mail]
1.2 The contractor is ARUBA CONSTRUCTION LTD which a general contractor duly licensed in good standing with the following
information for contacts:
ADDRESS LINE OF CONTRACTOR 1: 66 SAD LANE
COMPOST 1996
PHONE NUMBER OF CONTRACTOR: 0718230194
EMAIL ADDRESS: [e-mail]
1.3. The construction site that will be completed as per the terms and conditions of the contract as are illustrated:
Address of the street 876-009
Address of the site
Legal description -

Private house 2 Levels
1.4. The project of the construction will mean the work that the contractor or the agents of the contractor will be required to perform
for the client as covered within the specification document below:
DOCUMENT OF PLAN(S) – Check with the document of the plans.
DOCUMENT FOR SPECIFICATION(S) - Confirm with different documents for specification.
Article 2 – Compensation
2.1. While considering the work done on the construction project by the contractor, the contractor will be paid the total sum of
$275,000.00 by the owner. The payment will be done as per the milestone that has been set below and will be subjected to changes on
the basis of scope work. Terms and condition of the contract of construction will be followed. The period of construction will be
limited to 26 weeks.

2.2. Partial payments will be made by the owner to the contractor after receiving a 10-day notice of the milestones
TRADE VALUE
($)
MONTH
1
MONT
H 1
MONTH
2
MONT
H 2
MONTH
3
MONT
H 3
MONTH
4
MONT
H 4
MONTH
5
MONT
H 5
MONTH
6
MONTH
6
MONTH
7
MONT
H 7
%
COMPLE
TE
CLAIM
%
COMPLE
TE
CLAIM
%
COMPLE
TE
CLAIM
%
COMPLE
TE
CLAIM
%
COMPLE
TE
CLAIM
%
COMPLE
TE
CLAIM
%
COMPLE
TE
CLAIM
Preliminaries $
25,000
3
5
$
8,750
4
5
$
2,500
6
0
$
3,750
7
5
$
3,750
9
0
$
3,750
9
5
$
1,250
10
0
$
1,250
Excavator $
5,000
10
0
$
5,000
10
0
$
-
10
0
$
-
10
0 $ - 10
0 $ - 10
0 $ - 10
0
$
-
Concreter $
19,000
6
0
$
11,400
10
0
$
7,600
10
0
$
-
10
0 $ - 10
0 $ - 10
0 $ - 10
0
$
-
Bricklayer $
24,000
2
0
$
4,800
7
0
$
12,000
10
0
$
7,200
10
0 $ - 10
0 $ - 10
0 $ - 10
0
$
-
Carpenter $
43,000 - $
-
3
0
$
12,900
7
5
$
19,350
10
0
$
10,750
10
0 $ - 10
0 $ - 10
0
$
-
Joiner $
15,000 - $
- - $
- - $
-
2
0
$
3,000
5
0
$
4,500
9
5
$
6,750
10
0
$
750
Doors and
Windows
$
26,000
1
0
$
2,600
6
0
$
13,000
8
0
$
5,200
10
0
$
5,200
10
0 $ - 10
0 $ - 10
0
$
-
Roofer $
16,000 - $
- - $
-
7
0
$
11,200
9
5
$
4,000
10
0
$
800
10
0 $ - 10
0
$
-
Linings/Insulati
on
$
20,000 5
$
1,000 5
$
-
1
0
$
1,000
6
0
$
10,000
10
0
$
8,000
10
0 $ - 10
0
$
-

Electrician
(Provisional
Sum)
$
24,000
1
0
$
2,400
1
8
$
1,920
2
8
$
2,400
6
0
$
7,680
7
5
$
3,600
8
5
$
2,400
10
0
$
3,600
Plumber and
Drainer
(Provisional
sum)
$
24,000 - $
-
1
8
$
4,320
1
8
$
-
6
0
$
10,080
7
5
$
3,600
8
5
$
2,400
10
0
$
3,600
Tiler $
12,000 - $
- - $
- - $
-
1
5
$
1,800
5
0
$
4,200
10
0
$
6,000
10
0
$
-
Painter $
10,000 - $
- - $
- - $
- - $ - 3
0
$
3,000
7
5
$
4,500
10
0
$
2,500
Landscaper
(Provisional
sum)
$
12,000 - $
- - $
- - $
- - $ - - $ - 1
0
$
1,200
10
0
$
10,800
CONTRACT
SUM
$
275,000
$
35,950
$
54,240
$
50,100
$
56,260
$
31,450
$
24,500
$
22,500
2.3. There will be taking off 10% as retention for every progress claim. Claim.
TRADE VALUE ($) MONTH 1 MONTH 2 MONTH 3 MONTH 4 MONTH 5 MONTH 6 MONTH 7
CLAIM CLAIM CLAIM CLAIM CLAIM CLAIM CLAIM
CONTRACT
SUM
$
275,000 $ 35,950 $ 54,240 $ 50,100 $ 56,260 $ 31,450 $ 24,500 $ 22,500
Retention 10% $ 3,595 $ 5,424 $ 5,010 $ 5,626 $ 3,145 $ 2,450 $ 2,250

The release of 50% will be done at the practical completion while the other 50% will be given out at the end of period of defects
liability. It is important to note that DLP for this particular project is 13 weeks.
2.4 It will be within the rights of the contractor to keep the project idle and stop working in case due payments are not made. In case
the work is stopped for this particular reason and for a period of 13 weeks without any payment made, the client will be de deemed to
be in default and the contractor may decide to make request for full payment. Also if after 30 days no payments are made so far, there
is entitlement by the contractor to legal remedies.
Article 3 – Commencement, contingencies, and Completion
3.1. There will be the provision of notice by the owner to the contractor regarding the approval of the loan for construction. In the
event that the contract of the construction is contingent on the client getting a construction loan and the very loan is not got before the
deadline of contingency neither the contractor nor the owner shall have any obligation under this contract of construction.
3.2. The construction work will start 60 days after the date of the construction contract. This will be after the contractor receives
notice from the client for the approval of a loan for construction.
3.3. The scheduled period for the construction work is 26 weeks unless there will be modifications per the terms and conditions of the
contract.

Article 4 – Variation in Orders
4.1. It is obvious that the performance of work under the contract of construction will change from time to time. In the event that
similar cases reflect on this particular project, the communication will be done to the concerned parties via writings. The written
document will have at least the following information: The requested date, proposed changes, work, price and time. After all the
parties have appended their signatures, the document will be designated as a “Change Order” and it will later be included into the
contract of construction as an issue binding to both parties( Epstein 2018).
Article 5 – Other provisions
5.1. It will be the duty of the contractor to get permissions and permit for the construction work at its own cost,
5.2. The contractor will maintain all the required documents for the construction including licenses. Upon advance notice to the client,
the contractor may subcontract a portion of the work of construction. This must be done as per the terms and conditions of the law.
5.3. There will be the provision of access to the property by agents, employees, contractor, and other subcontractors during the
process of construction of the project.

5.4. The agents of the owner will be granted to the construction site during the period of construction for the purposes of inspection
and evaluation of the work. The inspections, however, will be conducted at a reasonable time
5.5. There will be maintenance and purchase of policies of insurance by the parties during the period of construction. The insurance
will seek to duly cover $275,000 that will also be subject to deductions not exceeding $10,000.
Type of insurance: Building Insurance
Risks insured:
 Fire
 Shared wall
5.6. It will be the responsibility of the contractor to properly dispose of the materials of construction and other debris. This should be
done from the date the construction started to the time of issuing the occupancy certificate.
5.7. “Hazardous Materials” term as used in this contract of construction refers to any substance that is hazardous including but not is
limited to, solvents chemicals, petroleum products, explosives, flammable materials, and radioactive materials. It will be the
responsibility of the contractor to ensure the removal and disposal of the materials that are hazardous

5.8. In case of the property destruction either as a whole or in parts before a certificate of occupancy is issued and after the
commencement date, there will be right of contract termination by either party.
5.10. There will be no breach of contract by the contractor or to have liability in cases of acts of God, strikes, and unavailability of a
specific type of labor and other factors that are beyond the control by the contractor.
Article 6 – Punch List and substantial completion
6.1. There will be the provision of notice by the contractor to the owner regarding the substantial completion of the project. The
project will then be subjected to inspection by the owner within 30 days upon receiving such notices before delivering a punch list to
the contractor. The punch list will basically contain the deficiencies identified by the owner (Waelde & Ndi 2016). The contractor will
then respond by correcting the raised matters. The owner may decide to withhold some of the money until the entire correctional are
made.
Article 7 – Section of Warranties
7.1. Contractor presents and warrants that it is licensed duly to carry out the work under the agreement of construction and the
performance of the work will be in a manner of workmanlike, in compliance with the applicable codes, laws meeting the standards of
the contract of construction like specifications and plans as included

7.2. The owner as presented here is the property legal owner as has authority to legal sign contract without seeking permission from
any other party. That the work requested as per the specifications and the plans are in compliance with all the applicable codes and
laws and that the owner has the ability financially o pays contractor any form of compensation and any adjustments that may be very
much reasonable.
7.3. All the parties will deliver and execute to other third parties the documents that are considered relevant in order to effectuate the
provision of the contract of construction. This will include the permit of construction, occupancy certificate among others.
Article 8 – Terms considered general
8.1. This contract of construction may not be subjected to signature by any party without consent written. Also, the same consent
should not be withheld unreasonably.
8.2. Any notice permitted or required under the conditions of the contract of construction shall be considered pursuant to article 1
that has been set above.
8.3. Should any provision of this particular contract of construction found be invalid, unenforceable or illegal, the remaining portion
of shall be in full effect and force.

8.4. This particular contract is under the governance of the laws of the States of Wales and any legal proceedings and interpretation
must be done will be confined only in the country of Australia.
8.5. The construction contract will be binding inure to the gains of the parties and if allowed upon their successors, executors, and
trustees.
8.6. The specification will always take precedence over the plan in the event of conflict. This means that the plan will also take
precedence over this particular document as well.
8.7. This contract of construction together with documents included in section 1.4 is only subject to changes as outlined in section
1.4. It is a representation of the agreement between the involved parties and the modification can only be done with signatures of all
the parties.
Performed by the parties in the dates that have been shown below.
SIGNED DATE BY OWNER _______________________________
MR&MRS OWILI

DATE SIGNED BY CONTRACTOR _______________________________
ARUBO CONSTYRUCTION LTD
Question 7
Part a
TRADE AREA GROSS VALUE
($)
VALUE OF
MARGIN AND
GST ($)
NET VALUE ($) % OF NET
CONTRACT
Preliminaries 25000 $ 2,678 $ 22,322 9%
Excavator 5000 $ 537 $ 4,464 2%
Concreter 19000 $ 2,035 $ 16,965 7%
Bricklayer 24000 $ 2,570 $ 21,429 9%
Carpenter 43000 $ 4,608 $ 38,393 16%
Joiner 15000 $ 1,609 $ 13,394 5%
Doors and Windows 26000 $ 2,785 $ 23,215 9%
Roofer 16000 $ 1,715 $ 14,287 6%
Linings/Insulation 20000 $ 2,148 $ 17,858 7%
Electrician (Provisional
Sum)
24000 $ 2,572 $ 21,428 9%
Plumber and Drainer
(Provisional sum)
24000 $ 2,572 $ 21,428 9%
Tiler 12000 $ 1,287 $ 10,715 4%
Painter 10000 $ 1,072 $ 8,928 4%
Landscaper (Provisional
sum)
12000 $ 1,287 $ 10,715 4%
CONTRACT SUM 275000 $ 29,465 $ 245,538 100%

Part b, c and d
TRADE VALUE ($)
MONTH 1 MONTH 1 MONTH 2 MONTH 2 MONTH 3 MONTH
3 MONTH 4 MONTH 4 MONTH 5 MONTH 5 MONTH 6 MONTH
6 MONTH 7 MONTH
7
%
COMPLETE CLAIM %
COMPLETE CLAIM
%
COMPLET
E
CLAIM %
COMPLETE CLAIM %
COMPLETE CLAIM %
COMPLETE CLAIM %
COMPLETE CLAIM
Preliminaries $ 25,000 35 $ 8,750 45 $ 2,500 60 $ 3,750 75 $ 3,750 90 $ 3,750 95 $
1,250 100 $
1,250
Excavator $ 5,000 100 $ 5,000 100 $ - 100 $ - 100 $ - 100 $ - 100 $ - 100 $ -
Concreter $ 19,000 60 $ 11,400 100 $ 7,600 100 $ - 100 $ - 100 $ - 100 $ - 100 $ -
Bricklayer $ 24,000 20 $ 4,800 70 $ 12,000 100 $ 7,200 100 $ - 100 $ - 100 $ - 100 $ -
Carpenter $ 43,000 - $ - 30 $ 12,900 75 $ 19,350 100 $ 10,750 100 $ - 100 $ - 100 $ -
Joiner $ 15,000 - $ - - $ - - $ - 20 $ 3,000 50 $ 4,500 95 $
6,750 100 $ 750

Doors and
Windows $ 26,000 10 $ 2,600 60 $ 13,000 80 $ 5,200 100 $ 5,200 100 $ - 100 $ - 100 $ -
Roofer $ 16,000 - $ - - $ - 70 $ 11,200 95 $ 4,000 100 $ 800 100 $ - 100 $ -
Linings/Insulatio
n $ 20,000 5 $ 1,000 5 $ - 10 $ 1,000 60 $ 10,000 100 $ 8,000 100 $ - 100 $ -
Electrician
(Provisional Sum) $ 24,000 10 $ 2,400 18 $ 1,920 28 $ 2,400 60 $ 7,680 75 $ 3,600 85 $
2,400 100 $
3,600
Plumber and
Drainer
(Provisional sum)
$ 24,000 - $ - 18 $ 4,320 18 $ - 60 $ 10,080 75 $ 3,600 85 $
2,400 100 $
3,600
Tiller $ 12,000 - $ - - $ - - $ - 15 $ 1,800 50 $ 4,200 100 $
6,000 100 $ -
Painter $ 10,000 - $ - - $ - - $ - - $ - 30 $ 3,000 75 $
4,500 100 $
2,500
Landscaper
(Provisional sum) $ 12,000 - $ - - $ - - $ - - $ - - $ - 10 $
1,200 100 $
10,800
CONTRACT SUM $ 275,000 $ 35,950 $ 54,240 $ 50,100 $ 56,260 $ 31,450 $ 24,500 $ 22,500
REFERENCES
Corbin, A. L. (2018). Conditions in the Law of Contract. Yale LJ, 28, 739.
Epstein, R. A. (2018). Beyond Foreseeability: Consequential Damages in the Law of Contract. The Journal of Legal studies, 18(1),
105-138.
Lando, O. (2013). European contract law. Am. J. Comp. L., 31, 653.
Llewellyn, K. N. (2018). On Our Case-Law of Contract Offer and Acceptance, I. Yale LJ, 48, 1.

Llewellyn, K. N. (2019). Our Case-Law of Contract: Offer and Acceptance, II. The Yale Law Journal, 48(5), 779-818.
Macneil, I. R. (2017). Contracts: adjustment of long-term economic relations under classical, neoclassical, and relational contract
law. Nw. UL Rev., 72, 854.
Sullivan, T. J. (2016). Punitive damages in the law of contract: the reality and the illusion of legal change. Minn. L. Rev., 61, 207.
Waelde, T. W., & Ndi, G. (2016). Stabilizing international investment commitments: international law versus contract
interpretation. Tex. Intel LJ, 31, 215.