What is a “form of contract”?
You may have heard of the different types of contract: professional contract, main contract and turnkey contract. But do you know what the terms cover?
In short, a the term “contract form” cover who manages the construction project, new construction and renovation, and is responsible for the construction being carried out on the agreed terms.
The types of contract are usually divided into three main categories: professional contract, main contract and turnkey contract.
When the client enters into an agreement with a hovedentreprise – that is, the craftsman or craftsmen who are to carry out the tasks – it is a contract.
For smaller construction projects, it is quite normal that there is only one craftsman associated with the project. For example, a carpenter. But if the task is just a little bigger, it will typically take several different professionals.
It places a number of demands on how the project is planned and executed. And in what order. Therefore, you need to find out which type of contract best suits your construction project.
How do you choose the right form of contract?
In short, it depends on your construction project. You should start by considering whether to build new, build or rebuild.
Then try to get an overview of how many different professionals are to be involved in the project. Do you already have a project plan and the necessary construction drawings? These are questions like these that you need to consider when choosing the right type of contract for your particular construction project.
It is important that you find out how much help you need to manage the construction project. It all depends on your craftsmanship and your ability to structure and plan.
Only a few have the necessary prerequisites to manage the entire project themselves. This is especially true in the case of more extensive construction. It requires insight into technical aspects of construction, law and economics. We therefore recommend that you get professional advice so that the project does not run wild and cost you more money than is absolutely necessary.
Subject contract is for you who can and will manage your construction project yourself. You can advantageously take an adviser with you for advice, even if you choose this type of contract. But as a starting point, you are responsible for obtaining a building permit for the design as well as drawings, building descriptions, process plan etc.
You have the financial and legal responsibility, and are responsible for obtaining material offers and offers for craftsmen.
You enter into agreements with each individual craftsman about when the tasks must be completed and what the price must be. If you are good at negotiating, and have knowledge of building materials, you might be able to save money. Because you choose the companies that will carry out the tasks.
However, you should be aware that in connection with a construction project, disagreements may arise between the craftsmen and companies involved. It is your job to solve them. It can be demanding because it places high demands on you as a conflict resolver. If you do not have craft experience yourself, it can be difficult to mediate between the professional groups.
The advantage of choosing a specialist contract is that you manage your construction project yourself. You are the “boss” and therefore have a lot to say in relation to how the construction is carried out. And how the process will be.
If you are in control of economics, law and construction technology, the specialist contract may be right for you. But it is demanding to take care of it all you. You need to know what you are doing.
If you overestimate your abilities, it can cost a lot of money and become an unpleasant construction process. Moreover, it is time consuming to take care of it all you. You must constantly keep your finger on the pulse and follow what is happening on the construction site.
You may risk the schedule for the construction project slipping. And that there will be unexpected construction technical problems, because the craftsmen are only responsible for the part of the construction project that they carry out themselves.
Jacobsen Byg therefore recommends that you get professional help. With a skilled and experienced consultant by your side, you are better equipped to manage the project safely in goals and avoid unnecessary costs and hassles.