From the course: Construction Management: Project Delivery Methods

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Changes in the way you are paid

Changes in the way you are paid

From the course: Construction Management: Project Delivery Methods

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Changes in the way you are paid

- In addition to adapting to changes and how we get chosen as a contractor, some of these project delivery methods will change the way we get paid. Design-bid-build and design-build tend to be fairly straight forward and based on a fixed price. That fixed price might be a lump sum for all services or it might be based on unit prices, like the street improvement work I did, where our bid consisted of unit prices for each element, paving, sidewalk, curb, traffic signals, et cetera. Prices are agreed upon, they're listed in the contract documents and then work is build as construction progresses. The CMAR method can change things a little. For one thing, you need to be paid for preconstruction services, those design assist services. This is great, it's more billable work for the contractor and I for one, would much rather be billing for services the owner expects and wanted than billing for change orders that I'm having to fight to get but as a contractor, these preconstruction services…

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