Contract Types

When to Use:

• When there is well defined scope
• When there is well defined specifications
• When a Client requires cost certainty prior to work commencing
• When minimal changes to the scope and specifications are anticipated

Contract Used: CCDC 2 – Stipulated Price Contract

Description: With this type of contract BelVan Construction is required to provide a stipulated price to the Client prior to commencing work for procuring, scheduling and monitoring the material, labor, sub-trades, tools and equipment necessary for the construction of the project.

Once the work commences the Client is invoiced a percentage of the contract value at certain “project milestones” or at agreed to time periods.

Any changes to project costs must be agreed to in writing prior to the Contractor proceeding with the work. These changes to the scope, schedule and budget are documented using BelVan Construction’s Change Management Procedures.

When to Use:

• When there is not a well-defined scope
• When there is not well defined specifications
• When a Client requires minimal cost certainty prior to work commencing
• When changes to the scope and specifications are anticipated

Contract Used: CCDC 3 – Cost Plus Contract

Description: With this type of contract BelVan Construction will typically provide a “budget price” to the Client prior to commencing work for procuring, scheduling and monitoring the material, labor, sub-trades, tools and equipment necessary for the construction of the project.

Once the work commences the Client is invoiced on a regular basis throughout the project for all labour and costs incurred using agreed to hourly rates for labour and a specified markup on materials and subtrades.

When to Use:

• When a client requires the input from a Contractor during the planning/design phase of a project
• When the schedule time does not allow for detail design/engineering to be completed and sent out for tender
• When the Client wishes to and has the ability to procure the materials and subtrades directly

Contract Used: CCDC 5A – Construction Management Contract - for Services

Description: With this type of contract BelVan Construction is hired by the Client in a traditional construction management role where the Client is ultimately responsible for procuring the material and hiring the Trade Contractors directly to carry out the construction

BelVan Construction’s sole responsibility is to provide guidance to the Owner during the process of pre-construction and during construction. In the early stages of project development BelVan planners assist the client in defining the project scope and budget. BelVan project planners work with the client and the designer to find solutions that will fit with the Clients expectation for budget and schedule time.

Once the work commences BelVan Construction is paid a fee for the Services by way of either a fixed amount, a percentage of the Construction Cost or, alternatively, on time-based rates. In addition BelVan Construction is reimbursed for the actual expenses it incurs in carrying out the Services.

When to Use:

• When a client requires the input from a Contractor during the planning/design phase of a project
• When the schedule time does not allow for detail design/engineering to be completed and sent out for tender
• When the Client wishes to have BelVan Construction procure the materials and subtrades

Contract Used: CCDC 5B – Construction Management Contract - for Services & Construction

Description: With this type of contract BelVan Construction is hired by the client and takes on the obligation to carry out the actual construction using its own crews, suppliers and subcontractors.

BelVan Construction provides guidance to the Owner during the process of pre-construction and during construction. In the early stages of project development BelVan planners assist the client in defining the project scope and budget. BelVan project planners work with the client and the designer to find solutions that will fit with the Clients expectation for budget and schedule time.

BelVan Construction is responsible for procuring, scheduling and monitoring the material, labor, sub-trades, tools and equipment necessary for the construction of the project.

Once the work commences BelVan Construction is paid a fee for the Services and a fee for the Work, by way of either a fixed amount, a percentage of the Construction Cost or, alternatively, on time-based rates.

When to Use:

• When the Client only has a known outcome of what they want the project to accomplish
• When there is minimal design and specifications available
• When a Client requires cost certainty prior to work commencing

Contract Used: CCDC 14 – Design-Build Stipulated Price Contract

Description: With this type of contract BelVan Construction compiles a team (architects, designers, engineers, suppliers and subcontractors) that work under a single contract with the Client to provide design and construction services. One entity, one contract, one unified flow of work from initial concept through completion.

For this type of contract to be successful the Client must be able to make quick, sound decisions; and there must be experienced subcontractors committed to achieving the goals set by the Client.

Once the work commences the Client is invoiced a percentage of the contract value at certain “project milestones” or at agreed to time periods.

Any changes to project costs must be agreed to in writing prior to the Contractor proceeding with the work. These changes to the scope, schedule and budget are documented using BelVan Construction’s Change Management Procedures.