Lump Sum (Fixed Price) Contracts

When the contract price is stated as a lump sum, the contract is referred to as a fixed price contract. Under a fixed price contract, the contractor bears all of the risks associated with the actual cost of completing the project. If the actual construction costs exceed the fixed price, the contractor is responsible for such excess costs and is obligated to complete the work for the fixed price. On the other hand, if the actual construction costs are less than anticipated, the contractor is entitled to the entire fixed price amount. The cost savings accrue to the contractor, increasing the contractor’s profit on the project.

Late Fees

Assessments are generally considered delinquent 15 days after they become due. Once an assessment is delinquent, an association may impose a late fee of $10.00 or up to 10% of the delinquent assessment, unless otherwise stated in the CC&Rs. Since assessment payments are generally applied to the oldest assessment due, late fees may accrue on an owner’s assessment account until the account is paid in full

Laws

Laws is a generic term that encompasses virtually all types of local, state and federal legislation that has been enacted by the relevant representative body and signed by the chief executive or other authorized executive officer of the governmental unit. The term also applies to regulations that have been enacted by local, state and federal agencies that have non-elected officials appointed to enforce and implement legislative enactments proving the adoption of regulations. Finally, laws also encompass the holdings in court decisions and their interpretation of constitutional, legislative and administrative enactments.