_____________________________________________ Contractor Work Agreements - Main Types : There are four basic types of agreement. Keep in mind that many contracts may be a combination of these, with each type lending itself more so to a particular use. Fixed Lump Sum - Includes all labor and materials needed for project completion. Here be sure and review any additional labor clause stating the terms and conditions for work above and beyond the stated amount. Labor Only - May be fixed or hourly sum amount stating the labor exclusively, for performing skilled or unskilled labor. If you go this route, be certain who is responsible for material acquisition/delivery and a possible cap on the hourly total is not uncommon. T & M/Cost Plus - Time and Materials, or cost plus refers to an agreement whereby the project is taken on a time charge with materials separated out but accounted for. Or cost plus a percentage of profit. This is suitable for projects where there are likely hidden, concealed aspects that can be revealed during the job that'll need to be addressed that were not apparent before starting. While arranging for T & M/Cost Plus specify who is responsible for tracking hours while on the job, if these are billed-out for actual hours of skilled performance and if any road time to and from the jobsite is compensated for. Also, the possibility of a cap limit not to be exceeded. You may want to ponder the motivating incentive for the contractor who is engaged in this way, and if this style is justified. Design-Build - An instrument, usually for with the scope of projects requiring expertise and/or specialization. Here the builder/contractor handles all phases of the process from design through to completion. A more recent variation of this, is for owners that wish to become their own contractors and employ the design-build agreement to oversee the project themselves while deriving more competent skill levels from a second, or third party advisor (such as a general contractor who may put out for or bid or solicit on owners behalf to those he or she knows is qualified) However design-build is usually termed to encompass the design and build phase together, by a design-build firm who handles all. PERCENTAGE PAYMENT/RETENTION: Before committing always see if you agree that there is a basis for partial payment upfront, as per any proposed payment terms such as to help cover materials, etc., Local laws place limits on amounts of down payment, holdback and govern contract regulation. To find out more contact your local building department or department of commerce for more details.