However, the owner is very risky, as there is no fixed limit for the costs of the project and the contractor cannot be incentivized to minimize the costs. That is why it is very important for the owner to indicate at the outset the costs that can be reimbursed and the costs charged to the contractor. A construction contract is a favorable agreement between the owner and the contractor. Essentially, the contractor undertakes to carry out the project in return for payment of a certain nominal amount. Many of the documents are promoters. Each site manager should be familiar with the contract, since every aspect of the project is controlled on the basis of a contract and the contractor`s work is also evaluated on the basis of the contract`s planning and specifications. The first pod period (Plan of Development) is communicated by the contractor to the Directorate-General for Oil and Gas and to the next POD with BP MIGAS. From small project to big project; From simple to demanding. The concept of commitment (agreement) also varies according to these things. From a funneling agreement to an Engineering Procurement Construction Contract or EPC Contract.
Contract contracts are the most common type in the construction sector. This type indicates that the contractor agrees to complete the project with a fixed nominal amount, in accordance with the agreed plans and specifications. For the owner, this type of contract is the safest, because the nominal money to spend was spent from the beginning. If the contract has been signed, the owner and the contractor must work in accordance with the contract, and in case of errors or errors in the plans and specifications, an amending order is created (ask the owner for a modification of the contract, which can lead to changes in terms of time, time and costs).