Tech Me EngineerTech Me Engineer
  • Engineering
    • Engineering Surveying
    • Construction
    • Construction Materials
  • Designing
    • Engineering Design
    • Graphics Design
  • Social Media
  • Technology
    • Computer
    • Apps
  • Earn Money
  • Tools
    • Brick Calculator
    • Construction Material Calculator
    • Tank Volume Calculator
Reading: What are the Most Different Types of Contract In 2023?
Notification Show More
Latest News
approximate construction cost
Calculate a Approximate Construction Cost of the 3 Storey Building[Nepal]
Construction
Origin of Water on Earth
Decoding the Origin of Water on Earth: A Scientific Milestone
Technology
Free Woodworking Diagrams
Are There Websites Offering Free Woodworking Diagrams in AutoCAD Format?
Engineering Design
Innovative Gadgets of 2025
10 Innovative Gadgets of 2025 You Need to Know About
Technology
rebound hammer test
Rebound Hammer Test of Reinforced Cement Concrete: A Comprehensive Guide
Engineering
Aa
Tech Me EngineerTech Me Engineer
Aa
Search
  • Engineering
    • Engineering Surveying
    • Construction
    • Construction Materials
  • Designing
    • Engineering Design
    • Graphics Design
  • Social Media
  • Technology
    • Computer
    • Apps
  • Earn Money
  • Tools
    • Brick Calculator
    • Construction Material Calculator
    • Tank Volume Calculator
Follow US
Tech Me Engineer > Construction > What are the Most Different Types of Contract In 2023?
Construction

What are the Most Different Types of Contract In 2023?

Ramesh Pradhan
Last updated: 2025/01/21 at 4:29 PM
Ramesh Pradhan
Share
9 Min Read
types of contract
SHARE

Different Types of Contract 

Table of content
Definition of contractThe essential element of the contractType of contractType of contract for construction workType of contract for goodsType of contract for Consultancy ServiceThe type of Contract with detailsThe unit rate for the item rate contractLump-sum contractDesign and build a contractEPS contractTurnkey contractBuild own operate transfer  contractCost-plus contract Types of contract in terms of enforceabilityFAQsWhat is a contract, and why is it important?What are the essential elements of a contract?What are the different types of contracts for construction work?What is a turnkey contract, and in what context is it commonly used?

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:

Type of contract

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

  1. Offer and acceptance
  2. Two are more competent parties or person
  3. The legal relationship of the contract
  4. Consideration
  5. legality of object
  6. Free Consent
  7. Certainty
  8. Possibility of performance
  9. The contractual capacity of the contract
  10. 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

  1. Unit rate contract 
  2. Time and material contract
  3. Piece of work contract
  4. Lump-sum contract
  5. Management contract
  6. Cost reimbursement  contract
  7. Design and Build Contract Act
  8. Performance-based maintenance for the management contract

Type of contract for goods

  1. Multi air contact
  2. Turnkey contract
  3. Design supply and erection contract
  4. Contract for the supply of specific goods and another service
  5. Framework are you needed to contact

Type of contract for Consultancy Service

  1. Time-based contract
  2. Indefinite service period contact
  3. Percentage-based contract
  4. Lump-sum contract
  5. 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

  1. Contrary to statutory  law
  2. Ambiguous vague and unlimited contact 
  3. non-possibility of performance
  4. signed by incompetent  parties
  5. 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.

What do you think?
Love0
Sad0
Happy0
Angry0
By Ramesh Pradhan
Follow:
Hi, My Name is Ramesh Pradhan. I am qualified as a Civil engineer From Nepal. I am Working in the Reputed Building Construction Company in Nepal. I am also the CEO and Co-Founder of the "Tech Me Engineer" Website. I am Working on the Construction information, AutoCAD, Autodesk, Estimation, Irrigation, Computer, and Related Field on this Website. "THANKS to VISIT"
Previous Article Standard Room Sizes for Residential Building in 2023 Standard Room Sizes for Residential Building in 2023
Next Article best civil engineering thesis topic The Best Civil Engineering Thesis Topic [ 99+ Topic Ideas}
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You Might Also Like

approximate construction cost
Construction

Calculate a Approximate Construction Cost of the 3 Storey Building[Nepal]

May 14, 2025
Sturdy Boundary Wall
Construction

Top 5 Reasons Your Property Deserves a Sturdy Boundary Wall Today

January 21, 2025
the best time for house construction
Construction

The Best Time for House Construction in Nepal: A Comprehensive Guide

February 8, 2025
20 engineering bridge construction
Construction

Top 20 Engineering Bridge Constructions in the World

January 21, 2025

© 2025

Tech me Engineer

All rights reserved

  • About Us
  • Terms And Conditions
  • Privacy Policy
  • Disclaimer
  • Contact Us
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?