Question: Please help with case 1 and 2 Case 1: Contract & PDM type -A Your client is about to secure a contractor for the construction

 Please help with case 1 and 2 Case 1: Contract &

Please help with case 1 and 2

Case 1: Contract & PDM type -A Your client is about to secure a contractor for the construction of a ten-story commercial office building. It wishes to know whether it should use a single or separate contract system. It also wants to know whether it should use a fixed-price or cost-plus contract. It asks you how "fixed is a fixed-price contract and whether it should set aside a reserve above any fixed-price figure in the construction contract. It asks whether it should conduct a competitive bid. 1.1 What is the difference between a single and a multi-prime contract? 1.2 What is the different between a fixed price and a cost-plus contract? Discuss the risks involved for both owner and contractor. 1.3 What would be your advice? What would be the considerations that would bear on any advice you would give? Case 2: Contract & PDM type - B A fraternity house was heavily damaged by a fire; a portion of the building was totally destroyed. Because of the importance of making the house habitable as soon as possible, the fraternity employed an architect who prepared plans and specifications and started negotiations with a particular contractor. The work was begun immediately, even though final plans and specifications had not been prepared. Plans and specifications were prepared and submitted during construction, when a written contract was prepared by the fraternity and agreed on by the contractor. The contract was prepared on a printed form that stated that it was to be used when the cost of the work plus a fixed fee was a basis for payment. It also stated that the contractor was to provide al labor and material and do all things necessary to complete construction according to the plans and specifications. The contract stated that any maximum cost would be adjusted in accordance with change orders. A typed-in provision stated, Estimated maximum cost of this work is $300,000. The contract also stated that the contractor would be reimbursed for all costs necessarily incurred for the proper execution of the work, with particular items included and other excluded. 2.1 What sources would be used to determine whether the contractor has, legal rights to recover for costs incurred that exceed $300,000? 2.2 What is likely to have been the intention of contractor? Of the fraternity? 2.3 What if the intentions were different and neither party knew or should have known of the other's intention

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