What is an open-end contract and when is it used?

An open-end contract is a type of construction contract used in Washington State. This type of contract is used when a construction project may require additional work or changes after the initial agreement is made between the parties. The open-end contract defines a maximum total amount that the owner can spend on the project, but does not specify a fixed price for each job. The contractor is typically paid for the work only after it has been completed. The advantage of an open-end contract is that it allows for flexibility in the project. If the owner decides to add tasks or make changes during the duration of the project, they can do so without having to renegotiate the contract. This can save time and money as well as reduce stress for both the owner and contractor. The open-end contract also allows for the contractor to be paid a reasonable amount for their work. This is because the contractor will be paid for any additional work that is added to the project but will not be overpaid. In most cases, the owner will have to provide additional funds in order to cover the costs of additional work. While this can be an additional expense, it is a lot less costly than having to renegotiate a fixed-price contract. Overall, an open-end contract is an advantageous way to handle construction projects in Washington State. It allows for flexibility, ensures that contractors are paid a fair amount, and ensures that the project can be completed on time and within budget.

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What is an open-end contract and when is it used?

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