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Hi my name is Bob raw with quest contracting services you might be wondering when you're considering hiring a general contractor, and you made a selection you might be wondering what type of construction contract should I consider when retaining the contractor and there's a couple of different contract forms that we typically use that you might want to consider the first one is the consensus documents by the associated general contractor's of America American Institute of Architects which is another standard document that use you can look at either one of those groups for the most part the documents are fair and well recognized by the legal community most common document type that we see or types that we see are the standard what I'll call stipulated some contract is typically used in a dead format where there's four or five general contractors bidding on a set of design documents and design documents call for a stipulated sum or a guaranteed price the next one is a cost plus a fee this is one where you sit down with the owner you show them all your subcontractor bids and the owner pays the actual cost of the construction, and they pay you a negotiated fee for your services that's another option the third one is what I call a guaranteed maximum price contract and sometimes those contracts have a saving split and by that I mean the contractor guarantees that the price won't exceed a certain price point the last one that is popular a lot of times in public work is what I call construction management at risk and this means that you negotiate upfront with the owner your fee for the project or your overhead and profit for the project, and they've already selected you as the contractor quickly based on your qualification, so those are four options that you might want to consider when you're talking to a contractor look at the consensus documents by the AGC look at the air documents see which one best suits you talk with your attorney my name is Bob raw with west contracting services at quest contracting services it's our business to build your business
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