How construction is contracted

The price is agreed in advance for the whole scope of works under the design and the bill of quantities. The contractor takes the quantity risk.

• Advantage: you know in advance what you will pay
• Requires: a complete, coordinated design before the contract
• Watch for: every change during construction is agreed in writing and charged for
• Watch for: the price includes the contractor’s risk allowance

Unit prices are agreed, and you pay for what is actually built, as measured and entered in the construction measurement book (građevinska knjiga). The final price is known only at the end.

• Advantage: you pay only for what has been built, with no risk allowance
• Requires: constant control of quantities against the measurement sheets (dokaznice mjera)
• Watch for: quantities may exceed the designed ones; how they are approved is agreed in advance
• Suitable: when conditions are uncertain (terrain, reconstruction)

Part of the works can be turnkey and part remeasured on the measurement book. For example, earthworks and foundations remeasured, and the superstructure and finishing works at a fixed price.

Payment is made in stages, not entirely in advance. An advance at signing, interim statements (situacije) for work done, and a final statement at handover. Every statement is recalculated and certified before payment, and a retention (part of the price) is held back until defects are corrected.

The exact deadlines and percentages are set by the contract. You receive a draft contract before signing.

• The design is complete and final, and you want a predictable sum: turnkey
• Uncertainties are large or the design is still changing: remeasured on the measurement book
• Not sure: we will tell you what we recommend for your building and why