Wright Contracting has experience with every type of construction project delivery method and contract type.  Here are examples of common construction project delivery contract structures:

Cost Plus Contracts (also known as Guaranteed Maximum Price)

There are multiple variations of Cost Plus and Guaranteed Maximum Price (GMP) contracts. An advantage with this contract format is that the Owner is afforded the opportunity to utilize our general contracting expertise and services during the Pre-Construction phase, while achieving competitive pricing and quality for the Construction phase. We find this highly collaborative approach to have the most successful outcomes in terms of on-time, on-budget construction projects and satisfied clients.

Lease Leaseback

Public projects can use an alternative contract type called Lease-leaseback. As with the GMP method, Lease-leaseback provides owners with more control over quality, opportunity for early general contractor involvement in cost estimates, value engineering, constructability, investigation of existing conditions, staging and scheduling. This leads to a more successful project through a spirit of teamwork and cooperation. In essence the contract follows the Guaranteed Maximum Price model and has less paperwork and liability than a hard bid.

Time and Material

Time and material construction contracts are usually preferred if the project scope is not clear, or has not been defined. The owner and the general contractor must establish an agreed-to hourly or daily rate, including additional expenses that could arise in the construction process. The costs must be classified as: direct, indirect, mark-up, and overhead. Sometimes the owner might want to establish a cap or specific construction project duration to the contractor that must be met, in order to have the owner’s risk minimized.

Stipulated Lump Sum (also known as a hard bid or fixed price)

This type of contract involves a total fixed priced for all construction-related activities. Lump sum contracts can include general contractor incentives for early completion, or penalties called liquidated damages, if a project goes beyond the agreed-upon schedule. Lump Sum contracts are used when a clear scope with a defined schedule and exact drawings and specification are set with no expected changes.