Different Types of Contract
Welcome to my website. This is the second block post of the contract. If you want to see all about the process of the contract you can see e in my previous post. But today in this blog post we will discuss the type of contract. You know what the contract types are. I will include all the essential elements and their types of contracts. So let’s get started:
Definition of contract
I always discuss this topic in my previous post. You can see my previous post for all about the process and definition of a contract. Don’t worry again and again I will define a contract for you.
A contract is an agreement between two people. Who has companies like parties and other things? in the contract to do or not to do something project work? The contract can be enforced by law. contracts have no legal obligation. all the arrangements are agreements but all the deals are not contracts. now next.
The essential element of the contract
- Offer and acceptance
- Two are more competent parties or person
- The legal relationship of the contract
- Consideration
- legality of object
- Free Consent
- Certainty
- Possibility of performance
- The contractual capacity of the contract
- Written and registration
Type of contract
Now, this is the main topic of this blog post. You know what the type of contract is. If you already know about the type of contract that’s good. but if you don’t know, I will discuss it in detail in this blog. There are different types of contract processes in the world. the type of contract about different based. like construction work, goods, Consultancy Services, and other relevant. Let’s see the basic information about the type of contract.
Type of contract for construction work
- Unit rate contract
- Time and material contract
- Piece of work contract
- Lump-sum contract
- Management contract
- Cost reimbursement contract
- Design and Build Contract Act
- Performance-based maintenance for the management contract
Type of contract for goods
- Multi air contact
- Turnkey contract
- Design supply and erection contract
- Contract for the supply of specific goods and another service
- Framework are you needed to contact
Type of contract for Consultancy Service
- Time-based contract
- Indefinite service period contact
- Percentage-based contract
- Lump-sum contract
- Performance-based fee-paying contract
The type of Contract with details
Depending upon the nature of the work type of contract proposed should we decide on construction work? That means the cost of Sun-Earth is directly dependent upon the nature of the work type and contract proposed. now discuss in detail all above the points of contract types. Let’s see the details below:
The unit rate for the item rate contract
This type of contract is followed by the Government of Nepal. This type of contract is based on estimated quantities of items of work included in the project and their unit prices. Every work can be estimated in quantities on the market and who is included in the project.
Lump-sum contract
Contact the engineer and the contractor agreed to do the described and specific project for a fixed price. This type of contact is suitable if the scope and schedule of the project are sufficiently defined to allow the Consulting engineer to estimate project cost. This type of contract to carry out construction work difficult to measure long sound contracts may be concluded. This type of contract agrees between the contractor and engineer. The combination of engineer and contractor can apply for this contract. This is also an important type of contract in the world.
Design and build a contract
A design and build contract may be concluded to have a design and construction carried out by the same contractor.
EPS contract
The EPS contract stands for engineer procurement and construction contract. In an EPS contract, the contractor design procures The misery material and builds the project either directly or by subcontracting part of the construction work.
Turnkey contract
A turnkey contract may conclude by mentioning the capacity of an industrial plant of high Technology. In Nepal, this type of and is generally used in the housing industry. In the construction of a house or building, this type of contract is used.
Build own operate transfer contract
Build own operate transfer or build operate transfer or built on operating is a form of project financing within the private entity that receives a concession from the private or public sector to finance design construct and operate a facility state in accommodation of the contract.
In this universe, the project supporter to recover is investment operating and maintenance expenses in the project.
Cost-plus contract
It is one of the best types of contract. It is also called a reimbursement contract. The contract agreement was in the cause for agreeing to pay the cost of all labor and motels + an amount for contractor overhead and profit. The contract may be specified as follows.
- Cost+ fixed percentage contract
- Cost+ fixed free contact
- Cost+ fixed free with bonus contact
- Cost + fixed fee with guaranteed maximum price contact
Types of contract in terms of enforceability
Invalid contract: All the elements of a contract are for the present the contract is valid
A voidable contract: Asper Contract Act is the following contract and voidable contract that is if the parties desire to make it void.
- forceful contract or contract against free consent or contract in banking fraud
- inter due to your undue influence
- Contract involving Fraud or misstatement
Void Contract: Contract act the following contracts become null and void
- Contrary to statutory law
- Ambiguous vague and unlimited contact
- non-possibility of performance
- signed by incompetent parties
- Contrary to public policy and welfare
These are the types of contracts I hope this blog is very useful and informative to you. If you like this post, please share it with your friends. with the different bases of the types of contracts included in this post. If you are an engineer or contractor, this information is very helpful. This is knowledgeable information for the person who was to bid for the construction work. Physically the contracts are used in the construction work. So thank you so much, guys. please visit again.
FAQs
What is a contract, and why is it important?
A contract is an agreement between two parties that can be legally enforced. It outlines the obligations and rights of each party in various situations.
What are the essential elements of a contract?
The essential elements of a contract include offer and acceptance, competent parties, legal relationship, consideration, the legality of an object, free consent, certainty, the possibility of performance, and contractual capacity.
What are the different types of contracts for construction work?
The different types of contracts for construction work mentioned in the article include unit rate contracts, lump-sum contracts, design and build contracts, EPS contracts, turnkey contracts, and build-operate-transfer contracts.
What is a turnkey contract, and in what context is it commonly used?
A turnkey contract is a type of contract where the contractor is responsible for both designing and constructing a project. It is commonly used in industries like housing construction.