Construction work is typically charged based on the service rendered on the agreed terms and at the agreed prices. A distinction must be made on whether to charge a lump sum for the work or to bill by unit price.
If a lump sum is chosen, the finished product is charged at the agreed, inclusive price – regardless of the specific expenses that were necessary to complete the project. This means that potential errors made when determining the volumes underlying the contract are not factored in. The risk that volumes are calculated incorrectly is passed to the contractor.
Things work differently with a unit price contract. In that case, the contractor charges for the actual work performed. Billing rules governed by the contract are normally applied for this sort of billing. The charges must be auditable by the contractor. This means that potential errors made when determining the volumes underlying the contract are rectified. The volumes charged for may vary upwards or downwards, even if not requested by the client, and the total price for the work will change accordingly.
We can assist you with the calculation and examination of the volumes charged.