CONSOLIDATED ELECTRODYNAMICS - Analytical Chemistry (ACS

Publication Date: September 1962. ACS Legacy Archive. Note: In lieu of an abstract, this is the article's first page. Click to increase image size Fre...
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Advantages of cost plus fee type contracts are that the builder is signed up shortly after the architect is selected. The builder can furnish estimates of costs during the devel­ opment of design, can advise con­ cerning costs of materials and con­ struction methods, can start con­ struction earlier, and can provide better control of subcontractors. Disadvantages are that costs are usually higher, the construction period longer, and the owner must furnish an auditing staff. Other problems are that the owner and ar­ chitect must have know-how and ex­ perience, the architect must be fully capable of preparing satisfactory estimates of construction costs, the architect should give advice on economy and suitability of mate­ rials and construction methods, starting construction earlier than with other types of contracts which leads to extra costs because of in­ complete design information, and owner's tendency to make design changes during construction. The upset price contract provides that the builder gets a percentage of any savings effected if the final cost is under the guaranteed total. One drawback to this method is that the system for deriving cost estimates results in higher costs than neces­ sary. Segregated lump sum contracts eliminate the general contractor. They force the owner to supply a similar service. Subcontractors usually submit higher bids in such cases as they know that the total construction period will be increased and with this increase, their over­ head will also increase. The most commonly used and advantageous system is the lump sum contract obtained through com­ petitive bidding. The American Telephone and Telegraph Co., the largest owner of buildings in the country, uses this system. Advan­ tages are: 1. Lower construction costs. 2. Faster construction schedules. 3. Minimum costs for architec­ tural supervision. 4. Minimum management cost to the owner. 5. Better cost control. Constructing the Building. Dur­ ing construction the owner, archi-

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VOL. 34, NO. 10, SEPTEMBER 1962 · 2 7 A