Labour Contract-Advantages, Disadvantages, And When To Use?
The contract is a legal agreement between two parties in written format and signed by both the parties and a promise is made for doing something in return.
Labour Contract
A contract is called labour contract when the owner purchases all the materials by himself and he invites the contractor only for the labour work.
In the labour contract, the contractor engages with labours and finished the construction work as per the design and specifications are given by the owner or department to the contractor.
From the labour side only, the labour contract is an item rate basis contract.
In the labour contract, the owner or department only see where the materials are required and arrange the materials on the time.
As the labour contract, work as an item rate contract only from the labour side the labour paid on the measurement of different items of work at their specified rate in the contract agreement.
Now let’s dive into the Advantages Disadvantages Of Labour Contract-
Advantages Of Labour Contract
The main advantage of the labour contract is the project work is of superior quality because the material arranged by the owner or department is of better quality.
The labour contract is suitable for private building constructions.
The total cost of the construction project is low because the materials are purchased by the owner or department side so there is no requirement to give the extra charge on the material purchasing.
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Disadvantages Of Labour Contract
The main disadvantage of the labour contract is a large area is required for the storage of the material which is already purchased by the owner or department side.
The second disadvantage of labour contracts is, this type of contract is not suitable for governmental projects.
In the labour contract, the owner is not free. They are also busy with the project work and see where the materials are required and supply the required materials on time.
It is very difficult for the government department to supply the materials on time and the availability of government bodies on the site is a major problem in the labour contract.
So these are the Advantages Disadvantages Of Labour contracts in civil engineering project management. now move on, when would we use a labour contract in the construction work?
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When Would You Use a Labour Contract?
The question is when would we use a labour contract in the construction work the answer is the labour contract is more suitable to use in private projects instead of governmental projects because the government is not always available for the supply of the construction material at the construction site when it is required.
But in a private construction project, it is easy to supply the materials at the time when the materials are needed on the site.
More Read- Cost Plus Percentage Rate Contract- Advantages, Disadvantages, And When To Use?
Frequently Asked Question(FAQ)
In civil engineering project management, a labour contract is a contract in which the owner purchases all the materials by himself and he invites the contractor only for the labour work.
The advantages of the labour contract in civil engineering project management are superior quality work, the low total cost of the project, etc.
The disadvantages of the labour contract in civil engineering project management are large area is required for the storage, not suitable for governmental projects, the owner is not free.