Contract Types in Renovation and Repair Construction Projects
The contract type defines how the planning, implementation, costs, and risks of a construction project are divided between the client and the contractor. Examples of contract types include fixed-price contract, KVR contract, and project management contract.
Design and Build Contract (KVR)
A Design and Build Contract, or KVR contract, is a contract type in which the contractor is responsible for both the design and construction of the project at a fixed price. The client only defines the goals and requirements, and the contractor carries them out on a turnkey basis, meaning that overall responsibility is transferred to the contractor.
Jokiväri’s strong professional expertise helps the client plan the project as a whole in a cost-effective way without compromising on quality. For us, design management plays a key role in creating added value for the project.
Roles and Responsibilities in a KVR Contract
- What it means: The contractor is responsible for both design and construction at a fixed price.
- Client’s role: Defines only the goals and requirements.
- Contractor’s role: Carries out the project on a turnkey basis and takes overall responsibility.
- Jokiväri’s added value: Professional expertise in planning, cost-effective implementation without compromising on quality, and design management that creates added value.
Project Management Contract (PJU)
A Project Management Contract, or PJU, is a contract type in which the client hires a contractor to manage the planning and implementation of the project in cooperation with the client, but not as a contractor with overall responsibility. The contract uses a target price and ceiling price to guide and control costs.
Jokiväri carefully tenders each part of the contract and prepares clear comparisons for the client, making the process transparent. Coordinating the planning and construction work helps the project progress faster and brings efficiency to the overall process.
Roles and Responsibilities in a Project Management Contract
- What it means: The contractor manages the planning and implementation of the project in cooperation with the client.
- Client’s role: Does not transfer overall responsibility to the contractor and defines the project goals.
- Contractor’s role: Manages the project, tenders, and supervises the different parts of the contract.
- Pricing: Target price and ceiling price are used to guide and control costs.
- Jokiväri’s added value: Transparent tendering and coordination of planning and construction help speed up the project and improve overall efficiency.
Fixed-Price Contract
A fixed-price contract is a contract type in which the contractor is responsible for carrying out the entire project at a fixed price. The client defines the plans and requirements, while the contractor takes care of the construction work, schedule, and costs, bearing the main risk for any possible cost overruns. Jokiväri’s organisation ensures careful scheduling and smooth progress, while focusing on customer satisfaction and occupational safety throughout the project.
Roles and Responsibilities in a Fixed-Price Contract
- What it means: The contractor is responsible for construction only, at a fixed price.
- Client’s role: Provides the plans and defines the requirements.
- Contractor’s role: Carries out the construction work, manages the schedule and costs, and bears the risk of possible cost overruns.
- Jokiväri’s added value: Focuses on schedule management, customer satisfaction, and occupational safety.
Ask us more about contract types and how they are implemented.