Contract types are divided into several categories according to pricing methods, and what are their characteristics?

The contract types are divided into lump sum contract, unit price contract, cost and expense contracts, etc. Among them, lump sum contract is divided into fixed lump sum contract and adjusted lump sum contract. The difference between lump sum contract and unit price contract lies in measurement. In lump sum contract, if the actual construction content is the same as when signing the contract, and the construction conditions have not changed, it is considered that the actual engineering quantity is equal to the engineering quantity when signing the contract, and the project price does not change with the change of engineering quantity, that is, the engineering quantity cannot be adjusted. However, in unit price contract, the bill of quantities or scope of works at the time of contract signing is usually not mandatory, and the final settlement is based on the actual completed quantities multiplied by the unit price to determine the total price, that is, the quantity is adjustable. The difference between fixed price and adjustable price is the difference in price. In a fixed-price contract, the price at the time of signing the contract is the price (whether unit price or total price) that should be adopted at the time of settlement, that is, the price cannot be adjusted. In an adjustable price contract, the price is generally adjusted according to the change of market price in the way agreed in the contract, that is, the price is adjustable. Cost-plus-reward contract refers to the type of contract in which the owner pays the actual cost of the project to the contractor and pays the remuneration in a certain way agreed in advance.

Legal basis:

People's Republic of China (PRC) Civil Code

Article 788 A construction project contract is a contract in which the contractor carries out the project construction and the developer pays the price. Construction engineering contracts include engineering survey, design and construction contracts.

Article 789 A construction project contract shall be in written form.

Article 791 The developer may conclude a construction project contract with the general contractor, or conclude a survey, design and construction contract with the surveyor, designer and constructor respectively. The employer shall not dismember a construction project that should be completed by one contractor into several parts and contract it to several contractors. The general contractor or the contractor for survey, design and construction may, with the consent of the employer, entrust part of its contracted projects to a third party. The third party shall be jointly and severally liable to the Employer with the general contractor or the survey, design and construction contractor for the work results it has completed. The contractor shall not subcontract all the construction projects it has contracted to a third party or subcontract all the construction projects it has contracted to a third party in the name of subcontracting. It is forbidden for the contractor to subcontract the project to units that do not have the corresponding qualifications. Subcontractors are prohibited from subcontracting contracted projects. The construction of the main structure of the building project must be completed by the contractor himself.

Derivative problem:

What is the most effective way to deal with contract disputes?

The most effective way to solve contract disputes is for both parties to negotiate on the basis of equality and friendship, express their true meaning and seek common interests. But if both parties prefer arbitration or litigation, these two methods are equally effective. According to the provisions of the Civil Procedure Law, the provisions of this Law shall apply to the people's courts in accepting civil lawsuits brought by citizens, legal persons, other organizations and their property relations and personal relations. When trying a civil case, the people's court shall, on the basis of clear facts, distinguish right from wrong and conduct mediation on the basis of the principle of voluntary participation of the parties. The Arbitration Law stipulates that contract disputes and other property rights disputes between citizens, legal persons and other organizations with equal subjects may be arbitrated.