Contract Sum v.s. Cost Of Work

Contract Sum v.s. Cost Of Work

Postby BITINGTHEDUST » Mon Oct 05, 2015 9:43 am

What is the difference btwn Contract Sum and Cost Of Work.
For example, hazardous material was found and owner had to take care of it.
Then, the cost of it is included in Cost Of WOrk, but not in Contract Sum?
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Re: Contract Sum v.s. Cost Of Work

Postby pwlcapricorn1 » Wed Oct 07, 2015 6:43 pm

Definition of cost of work: Sum of all expenses incurred by a contractor in the performance of a contract.

Definition of Contract Sum: The price stated in the owner-contractor agreement, which is the total amount payable by the owner to the contractor for the performance of the work under the contract documents; can be adjusted only by a change order.

If something was found at the site outside the scope of the contract then the owner would pay the contractor or another prime contractor to handle the work after or before an agreed amount was determined.
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Re: Contract Sum v.s. Cost Of Work

Postby hnQ_9999 » Tue Apr 11, 2017 10:18 am

pwlcapricorn1 wrote:Definition of cost of work: Sum of all expenses incurred by a contractor in the performance of a contract.

Definition of Contract Sum: The price stated in the owner-contractor agreement, which is the total amount payable by the owner to the contractor for the performance of the work under the contract documents; can be adjusted only by a change order....


I think they are the same, except until Contract is signed, then Cost of the Works
(which was flowing up or down, uncertain by Architect's estimate) becomes a solid,
fixed amount = Contract Sum.
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