Construction Law Episode 6: Price and Payment (Part 1)

In this episode, we dive into the foundational aspects of pricing and payment structures in construction contracts, as explained in Julian Bailey's Construction Law. Covering the basics of contract pricing, we explore key topics such as fixed-price contracts, cost-plus contracts, and target-cost arrangements. We also discuss the significance of clear payment provisions, including interim payments, milestone payments, and final payments, to maintain cash flow throughout a project. Additionally, we review the impact of variations, adjustments, and provisional sums on pricing. This episode is essential for understanding the fundamental financial mechanisms that drive construction projects.