Force account construction contract is a type of contract that is commonly used in the construction industry. It is an agreement between the owner of a construction project and a contractor, which allows the contractor to perform work on an as-needed basis. This type of contract is usually used for emergency or unforeseen work, where it is not possible to follow a traditional bidding process.
Under a force account construction contract, the contractor is authorized to proceed with the work without a formal bid process. Once the contractor is authorized, they can charge the owner for the work done at an agreed price. This price can be based on the actual cost of the work, plus a percentage or fixed fee for overhead and profit. Typically, the owner sets a limit on the amount of work that can be performed under a force account construction contract.
The use of force account construction contracts is common in situations where a project is subject to unforeseen events. For example, if a road is damaged by a landslide, a force account contract can be used to quickly repair the road. Similarly, if a building is damaged by a flood, a force account contract can be used to repair the damage.
One of the benefits of force account construction contracts is that they allow work to be done quickly. Since there is no need for a formal bidding process, the contractor can begin work immediately, without waiting for the completion of bidding and contract negotiations. This can be critical in emergency situations, where delays can cause further damage or safety hazards.
At the same time, force account construction contracts can be risky for both the owner and the contractor. Since the price of the work is not set in advance, there is a risk that the final cost will be higher than anticipated. The contractor may also face risks if the owner disputes the cost of the work, or if there are problems with the quality of the work.
As a result, force account construction contracts require careful negotiation and documentation. Both the owner and the contractor should ensure that the scope of work is clearly defined, and that there is a mechanism for resolving disputes over the cost and quality of work. They should also agree on a process for documenting the work done and the costs incurred, to ensure that there is a clear record of the work performed.
In conclusion, force account construction contracts are an important tool for the construction industry, allowing work to be performed quickly in emergency situations. However, they also require careful negotiation and documentation to minimize risks for both the owner and the contractor. As such, it is important to work with experienced professionals who can guide you through the process of negotiating and executing a force account construction contract.