CONSTRUCTION CONTRACT NOTES (AST)

● Construction contract is a major contract

Ex: nag agree kayo ni contractor para magtayo ng bridge, bldg, condo etc.
● Usually Long term in nature- more than 1 yr

Fixed Price contract

- Meron ka na agad initial fixed price
- Ex. sinabi ni contractor oh client eto yung isisingikl ko sayo 4m para a buong bldg. Wala
pang kinoconstruct - fixed na yung priced
- Normally kung ano man yung price nung simula, yun na yung babayaran ni customer
kay contractor pero may mga certain instances na maglalagay ng additional provision si
contractor dito sa contract na nag sasabi “pag tumaas yung mga presyo, tataasan din
natin ang contract price” - cost escalation clause

Cost plus contract

- Construction cost + profit
- Si contractor ay babayaran sya ng mga construction cost na naincur nya given na those
cost are capitalizable under PFRS 15 PLUS profit for the contractor for his service.

Construction contract with variation

- Variation- may changes na pinapasok sa orig plan ni contractor