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Fixed Price vs. Cost-Plus: How to Choose and Use Project Delivery Methods in Light of Fraud and Collusion

Gain an understanding of project delivery methods, their implications and the current legal landscape.

This topic explains the fundamentals of fixed price and cost-plus contracts, which dominate the field of project delivery methods. We will explore the incentives, risks and administration specifics associated with each type; examine how these methods enable collusion, kickbacks and fraud; and engage in a short case study of well-known projects demonstrating these issues. The topic will provide advice and practice considerations for avoiding these pitfalls. The primary objective of this topic is to provide you with a competent understanding of these project delivery methods, their implications and the current legal landscape, all to help better carry out your projects.

Learning Objectives

  • You will be able to describe the fundamental characteristics of fixed price and cost-plus project delivery methods and their common variations.
  • You will be able to identify methods to avoid and mitigate such risks on your own projects.
  • You will be able to recognize the modern legal landscape surrounding the construction industry, and the risk of fraud and collusion.
  • You will be able to explain the differences in administering both fixed price and cost-plus contracts.

82 minutes
Course Exam
Certificate of Completion
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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Agenda

Fixed Price vs. Cost-Plus Contracts

  • Basic Structure
  • Incentives and Risks
  • When to Use
  • Mitigating Risks With Variations
  • Common Clauses

Differences in Administering Fixed Price and Cost-Plus

  • Payment
  • Change Orders
  • Design Issues
  • Role of the Architect

Fixed Price and Antitrust Issues

  • Bid Rigging and Price Fixing
  • Anti-Collusion and Anti-Kickback Clauses
  • New York Presbyterian Hospital

Cost-Plus and Fraud Issues

  • Fiduciary Duties for Contractors and Construction Managers
  • Fiduciary and Notice of Substantial Costs Clauses
  • Tishman/Bovis Lend Lease/Pavarini Mcgovern

The Future Under Fixed Price and Cost-Plus

  • Transparency, Scrutiny and Litigation
  • Practical Considerations
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More Program Information

Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Credits

OnDemand Course

This course was last revised on June 24, 2019.

Call 1-866-352-9540 for further credit information.

No Credit Available

This program does NOT qualify, nor meet the National Standard for NASBA accreditation.

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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

Faculty

Carol A. Sigmond

Carol A. Sigmond

Greenspoon Marder

  • A seasoned legal professional with over 30 years of experience, she brings significant knowledge to her practice which concentrates on construction industry matters
  • She has extensive experience litigating construction disputes for public works and buildings in both the public and private sectors, as well as preparing contract documents including design-build, construction management, guaranteed maximum price, and fixed-price contracts
  • Recognized thought leader in the construction law community in New York
  • Current vice president of the New York State Bar Association and the former president of the New York County Lawyers Association
  • Frequent speaker and author on topics relating to construction law and publishes “The Co-Op Condo Help Line” appearing monthly in various Mann Report publications
  • Member of Law360‘s 2020 Construction Editorial Advisory Board
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Why Lorman?

Over 35 years and 1.4 million customers worth of experience providing continuing education. Our passion is providing you world-class training to help you succeed in business and as a professional.

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Product ID: 406156
Published 2019
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