Question
An owner has a small building constructed by a contractor using a CPFF contract. The contractor estimated the material cost at $81000 and the came
An owner has a small building constructed by a contractor using a CPFF contract. The contractor estimated the material cost at $81000 and the came up with a fixed fee of $41000 which includes all the labour cost estimates, When the project finished the actual material cost in $124000 but the contractor has made an extra claim to the owner of $12000 for extra labour because the owner changed their mind 3 times on the installation method of some items in the project. An arbitrator was used and determines that the contractor is 43% at fault for the extra labour from the changes. What does the owner pay the contractor? Hint, make sure you are clear on how much money each party is responsible for in the claim.
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