Pros and Cons of Cost-Plus vs. Fixed Price Contracts - Amazon Web ...

Pros and Cons of
Cost-Plus vs. Fixed
Price Contracts
LIVE AUDIO CONFERENCE
September 19, 2012
1:00 pm – 2:30 pm EST
REGISTER TODAY!
Only $219 Per Attendee
Sign up at
www.lorman.com/ID390232
or call 866-352-9539
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PACKAGE
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EDUCATION SERVICES
A DIVISION OF LORMAN BUSINESS CENTER, INC.
R
Keeping You Current.
Helping You Succeed. ®
Lump sum and cost-plus contracts for construction projects offer different
protections and incentives for both owners and contractors. With today’s
economic pressures, it is important that project participants know the factors
to consider in choosing between these pricing approaches and to understand
the advantages and disadvantages to each.
The current economic situation has imposed great strains on the construction
market. Every project and every industry participant has felt the impact. In
this environment, it is critical for owners and contractors to understand how
the adverse economic climate may impact the legal rights and duties that
apply to a construction project.
Learning Objectives:
•You will be able to review factors to consider in choosing between lump sum
and cost-plus contracts.
•You will be able to define advantages and disadvantages of lump sum and
cost-plus contracts.
•You will be able to describe current economic climate on the legal
framework on financing, payments, suspension and termination, bankruptcy
and defaults.
•You will be able to define costs vs. rates.
AUDIO CONFERENCE AGENDA
Cost-Plus Contracts vs. Lump
Sum Contracts
• Considerations
– Completeness of the Drawings
and Specifications
– Schedule – Fast Track?
– Design-Bid-Build or Other
Arrangement
– Competitive Procurement
or Negotiated
– Budgetary Constraints
• Pros and Cons of Lump
Sum Contracts
• Price Certainty for Owner
• Risk of Cost Overruns
on Contractor
• Simpler Payment Procedures
• Cost Savings to Contractor
website: www.lorman.com/ID390232 • telephone: 866-352-9539
• Changes – Added Scope or
Bid Error?
• Pros and Cons of Cost-Plus
Contracts
– Less Price Certainty – Without
a GMP
– Better for Incomplete Drawings
and Specifications
– Transparency on Cost Savings
– More Complex Payment
Procedures
– Defining Costs –
Costs vs. Rates
Impact of the Current Economy on
Lump Sum and Cost-Plus
Pricing Options

Pros and Cons of Cost-Plus vs.
Fixed Price Contracts
Meet The Presenters:
Daniel S. Brennan
Laurie & Brennan, LLP
• Founding partner at Laurie & Brennan, LLP in Chicago, Illinois
• Advises owners, designers and contractors on risk management in the
construction process
• Prosecutes and defends construction claims including professional negligence,
personal injury and delay claims
• Negotiates and drafts construction and design contracts for owners, contractors,
architects and engineers
• Advises clients with respect to design and construction of accessible facilities
under Title III of the Americans with Disabilities Act and the Fair Housing Act
• Member of the American Bar Association’s Forum on the Construction Industry
(serving on several committees)
• Recognized in Chicago’s Best Lawyers in the area of construction law; ranked
#8 in the Leading Lawyers “Top Ten” lawyers list for Illinois construction lawyers;
honored in Chambers USA; listed as an Illinois Super Lawyer, and International
Who’s Who of Construction Lawyers
Chad J. Shifrin
Laurie & Brennan, LLP
• Partner at Laurie & Brennan, LLP in Chicago, Illinois
• Prosecutes and defends claims involving construction contracts, leases,
construction defects, design errors and omissions, professional negligence,
mechanics liens, project delays, and ADA and other code violations in mediation,
arbitration and litigation
• Counsels owners, developers, tenants, contractors and subcontractors during all
phases of construction projects
EDUCATION SERVICES
R
Keeping You Current.
Helping You Succeed. ®
A DIVISION OF LORMAN BUSINESS CENTER, INC.
© 2012 Lorman Education Services. All rights reserved.
LIVE AUDIO CONFERENCE
September 19, 2012 • 1:00 pm – 2:30 pm EST
website: www.lorman.com/ID390232 • telephone: 866-352-9539
Continuing Education Credit
• CC 0.5 • CLE* • ENG*
For detailed credit information visit us at
www.lorman.com/ID390232 or contact us
at 866-352-9540.
*Visit www.lorman.com/ID390232 for a
complete list of states approved.
Who Will Be There?
This live audio conference is designed for
presidents, vice presidents, contractors,
subcontractors, engineers, architects,
construction and project managers,
developers, purchasing professionals
and attorneys.
REGISTER TODAY!
Only $219 Per Attendee
Sign up at
www.lorman.com/ID390232
or call 866-352-9539
GENERAL INFORMATION:
•This live audio conference may be recorded by Lorman.
•If you need special accommodations, please contact
us two weeks in advance of the program.
•Lorman Education Services is not approved to offer
self-study CPE credit for accountants; therefore, no CPE
will be given for this program if ordered as a self-study
package.
CANCELLATIONS: Substitute registrants can be named at
any time. A full refund, less a $20 service charge, will
be given if notification is given six or more business
days in advance. Notification of less than six business
days will result in a credit that can be applied to any
Lorman product or service. If you do not cancel or
attend, you are responsible for the entire payment.