What are the various types of contracts used in the construction industry?

When it comes to construction projects in South Dakota, the most common types of contracts used are Lump Sum Contracts, Cost Plus Contracts, and Time and Material Contracts. A Lump Sum Contract is a fixed price agreement between the buyer and seller in which the seller will give a lump sum quote for the entire construction project, including labor and materials. This type of contract is commonly used for smaller, less complex construction projects. A Cost Plus Contract is also a fixed price agreement, but instead of the contractor offering a lump sum quote, they agree to be paid for the direct cost of labor and materials, plus a fee for their services. This type of contract is often used for larger and more complex construction projects. Finally, a Time and Material Contract is an agreement between the buyer and seller in which the contractor is paid for their labor and materials at an agreed upon rate. This type of contract is typically used when the scope of the project is not clearly defined, or when it is difficult to estimate the total cost. Overall, the contracts used in the construction industry depend on the specifics of the project, as well as the size and complexity of the job. It is important to understand the different types of contracts available and determine which one will work best for the project.

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What are the various types of contracts used in the construction industry?

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