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BPPK Kemenkeu RI
30 Apr 202105:10

Summary

TLDRIn this video, Abu Sufyan discusses five types of contracts used for construction procurement in Indonesia. He explains the Lump Sum contract, where a fixed price is agreed upon for a defined scope of work; the Unit Price contract, which allows for pricing per unit with estimated volumes; the Combined Lump Sum and Unit Price contract for projects with uncertain volumes; the Turnkey contract, where the contractor delivers a fully operational project; and the Cost-Plus-Fee contract, typically used in emergencies, covering actual costs plus a fixed percentage. This informative session aims to enhance understanding of construction contracts.

Takeaways

  • 😀 There are five types of contracts used for construction procurement: lumpsum, unit price, combination of lumpsum and unit price, turnkey, and cost-plus fee.
  • 😀 A lumpsum contract is a fixed-price contract where all risks are borne by the contractor, suitable for fixed-scope projects.
  • 😀 Unit price contracts specify a fixed price for each unit of work, with payments based on actual measurements of completed work.
  • 😀 Combination contracts include both lumpsum and unit price elements, appropriate for projects with uncertain volumes.
  • 😀 Turnkey contracts involve the contractor completing the project fully, including all installations, making it ready for operation.
  • 😀 Cost-plus fee contracts are used in emergency situations, calculating costs based on actual expenses plus a fixed percentage fee.
  • 😀 Lumpsum contracts are ideal for projects like building or renovating structures.
  • 😀 Unit price contracts are suited for projects where unit costs are known, but volumes may vary, such as flooring replacement.
  • 😀 Combination contracts are beneficial for projects with uncertain portions, like buildings with unstable foundations.
  • 😀 Understanding the types of contracts is essential for effective procurement in construction projects.

Q & A

  • What are the five types of contracts used for construction procurement?

    -The five types of contracts are: 1) Lump Sum Contract, 2) Unit Price Contract, 3) Combined Lump Sum and Unit Price Contract, 4) Turnkey Contract, and 5) Cost Plus Fee Contract.

  • What is a Lump Sum Contract?

    -A Lump Sum Contract is an agreement where the scope of work has a fixed price and is completed within a certain timeframe, with all risks borne by the contractor.

  • In what scenarios is a Unit Price Contract suitable?

    -A Unit Price Contract is suitable for projects where the unit price for each item is fixed, but the total quantity of work is uncertain, such as in flooring replacements.

  • How does a Combined Lump Sum and Unit Price Contract work?

    -This contract combines both Lump Sum and Unit Price elements, used for projects where some work has uncertain volumes, like building construction with deep foundations.

  • What is the purpose of a Turnkey Contract?

    -A Turnkey Contract is an agreement where the contractor agrees to complete a project entirely, including all installations, making it ready for operation or occupancy.

  • When is a Cost Plus Fee Contract used?

    -A Cost Plus Fee Contract is utilized in emergency procurement situations, where costs are calculated based on actual expenses plus a percentage or fixed fee.

  • What are the risk considerations for a Lump Sum Contract?

    -In a Lump Sum Contract, the contractor assumes all risks associated with the project's scope and timeline, which can impact pricing.

  • Why might a project require a Combined Lump Sum and Unit Price Contract?

    -This type of contract is often required when parts of the project have well-defined prices, but other components are still subject to change in quantity.

  • What type of projects is a Turnkey Contract typically associated with?

    -Turnkey Contracts are commonly associated with construction projects that require comprehensive setup, such as residential housing or dormitories with all necessary amenities.

  • What factors are considered in a Cost Plus Fee Contract?

    -Factors in a Cost Plus Fee Contract include actual project costs and the agreed-upon percentage or fixed fee added to those costs for contractor compensation.

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Étiquettes Connexes
Construction ContractsProcurementIndonesiaEducationTypes of ContractsCost ManagementContract TypesConstruction IndustryProject ManagementLump Sum
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