Which MEP general contracting contract model is better for hotels?
Cost estimationUpdated 2026-04-27
A fixed lump sum contract suits projects with complete bills of quantities and drawings and a clear construction schedule; a rate based contract suits projects with incomplete dra…
Which MEP general contracting contract model is better for hotels?
A fixed lump-sum contract suits projects with complete bills of quantities and drawings and a clear construction schedule; a rate-based contract suits projects with incomplete drawings and frequent variations. It is recommended to use a lump-sum approach for the main scope, with a provisional sum reserved for disputed items, to avoid low-price winning bids followed by high-price settlements.
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