There are three main types of production orders identified according to the mechanism for calculating the amount to be paid by the employer: lump sum contracts, measurement contracts and refundable contracts. The different types are distinguished mainly by the person who takes care of the risks incurred, the party who has to bear the cost overruns and the party who can retain the savings if the project costs are lower than the estimated costs. [3] Section completion refers to a provision in a construction contract that allows for different completion dates for different phases of the work. This is a common practice for large projects that end in stages, allowing the customer to take possession of the finished parts, while the construction of others continues. [25] A construction contract is a mutual or legally binding agreement between two parties, based on guidelines and conditions that are documented in the form of documents. The two parties concerned are one or more property owners and one or more contractors. The owner, often referred to as “employer” or “customer”[1], is fully empowered to decide what type of contract should be used for a given development and to define the legally binding conditions in a contractual agreement. [2] A construction contract is an important document because it describes the extent of the work, risks, obligations and legal rights of the contractor and the owner. A national construction contract is an agreement that includes all the work that should be performed for the construction of an existing commercial or residential building or taking place in a given country. is not foreign or international. This contract is based on units and not on a single price. Payment is calculated at a set rate for each item, for example. B cubic metre for specific periods of the quantity used.

“The contractor gives an owner a price for a task or a certain volume of work, although at the time of entering into the contract, the parties may not know the actual number of units of work to be performed.” [14] Therefore, the owner does not have a specific final price until the project is completed. [19] This type of contract is normally used when the workload cannot be determined, for example. B for civil engineering projects which are the excavation of soil and rock. The contractor is paid on the basis of the units established and verified by the owner. [20] A “base date” is a date from which changes to conditions can be assessed. In a construction contract, the inclusion of a base date is generally used as a risk-sharing mechanism between the owner and the contractor for changes that may occur between the contractor`s fixing of the bid price and the signing of the contract. This period can be very long and the changes that occur can have a significant impact on the cost of the work. [22] Duke and Carmen stated: “Cost-plus with GMP offers a cap for all construction costs and royalties for which an owner is responsible…