What is a contracting and what are the methods?
Contracting is one of the methods of project implementation. The concept of contracting is a general title and there are various ways to do it. All these methods are similar in nature and differ only in details. The differences mostly refer to the way of receiving and paying and presenting bills.
What is a Contracting?
There are different ways to implement a project, either construction or non-construction. In general, to start and complete an economic project, two components are needed, financing and implementation. Funding is done by investors and project implementation by contractors or technical team.
Accordingly, there are two ways to build a project. The first case is that the investors have the ability to implement the project, which practically does not require another executor or contractor. Many buildings or villas are built in the same way. But the second case is that the investors, for any reason, such as lack of executive ability or even economic efficiency, leave the project to the executors or contractors. Many public and private projects are done in this way.
☑️ Types of Contracting
According to the type, size and quality of the project, contracting is done in different ways such as price list, wage list, lump sum, contract management, etc. As mentioned, the main difference in different contracting methods is related to the type of work report submission and invoice submission, as well as the settlement method with the employer. Some examples of them are described below.
☑️ Contracting large and governmental work and municipalities; Baha'i List
Contracting in government contracts and municipalities is generally done based on the price list and status statement. This category of contractors spends for the purchase of materials and wages, etc. and receives money from the employer based on the items in the price list. Therefore, the profit of this category of contractors is obtained from the difference between the amounts of the status statement and the expenses incurred. Price indexes are usually published by the management organization, which is accepted throughout the country and by various organizations, but other institutions may also have special price indexes. have.
☑️ Camera or Czech or Cross Contracting
In smaller works, the contractor may enter into a negotiation with the project owner after estimating the project and offer a lump sum regardless of the size and amount of the project. give.
☑️ Wage contracting
This type of contracting is mostly done by subcontractors. In fact, the contractor or sub-contractor and the employer agree on the salary for each meter of work execution, and at the end of the project, the meter is completed and the contractor's salary is paid.
☑️ Participation in construction
Participation in construction is generally done for the construction of buildings. In such a way that one or more people provide the land for the project and the executor or contractor bears the cost of construction and implementation, and some units are allocated to the land owners and some to the executor.
