1. Name and briefly describe each of the two basic types of competitively bid construction contracts. Which type would be most likely used for building the piers to support a large suspension bridge. Why?
Two basic types of competitively bid construction contracts are lump-sum and the unit-price contract. The lump-sum contract is when the contractor agrees to complete all work for a pre-determined price including profit and the contract. The unit-price contract is when the contractor quotes work on units separately instead of entire project. Price is based on units of work performed, and cost varies depending on the quantities of units. Building the piers to support a large suspension bridge will …show more content…
With a cost-plus contract, the contractor may be more suitable to bid low, knowing he can charge more if unforeseen circumstances arise thus saving money for the owner. Home owners often settle on the lowest bid so they can save more money. 8. Valid contracts require an offer, an acceptance, and a consideration. Identify these elements in the following cases: (a) The purchase of an item (b) The hiring of labor (c) A paid bus ride (d) A construction contract (e) The position of staff member in a firm
(a) The purchase of an item at the store
The offer for purchase of an item in a store would be taking it to cash register. The acceptance would be for the cashier to take the item and scan it. Finally the consideration is to exchange money for the product.
(b) The hiring of labor
The offer for hiring of labor would be a person seeing a job advertisement at fixed wage. The acceptance would be accepting the fixed wage. Finally the consideration is if the person is paid at the end of the day for work efficiency.
(c) A paid bus ride
The offer for a paid bus ride would be a person going to bus station, and asking for fares of the ticket. The acceptance