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Comparing Construction Contract Types: T&M, Lump Sum, Cost-Plus
You bid the job right. Your crew performed. But by the final invoice, the margin is gone. The culprit is almost never poor workmanship. It's the contract, signed before anyone clearly understood who absorbs overruns, who pays for scope changes, and who takes the hit when material prices spike mid-project. At Construction Cost Accounting , we see this pattern constantly. Choosing the wrong contract type is one of the most expensive mistakes a contractor can make, and it's enti
Mar 55 min read
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5 Major Types of Construction Contracts
Construction contracts are the backbone of every project you take on. Whether you're a general contractor bidding on a commercial build or a subcontractor negotiating terms, the type of contract you sign directly impacts your cash flow, profitability, and risk exposure. Yet too many construction businesses sign contracts without fully understanding the financial implications. The wrong contract type can drain your profits, create cash flow nightmares, or leave you exposed to
Jul 12, 20237 min read
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