Main Contract

What is a prime contract?

The main contract refers to the contractually defined and commissioned services of a project, which are to be performed according to the scope of services without additional claims or amendments. It forms the basis for the execution of a construction or real estate project and includes all defined works and services specified in the original agreement. The main contract ensures that all service areas of a construction project are clearly regulated and carried out without additional demands or external changes.

Significance of the Main Contract in Project Management and Procurement

The main contract is a central element in construction and project management, as well as in the awarding of construction services, as it establishes the contractual basis for the execution of works and services that must be provided during the project. The key advantages of the main contract include:

• Clarity on Deliverables: The master contract meticulously defines the services and construction work to be executed, thereby preventing misunderstandings and ambiguities.
• Transparency in Budget Planning and Contract Values: All costs and expenditures for services included in the main contract are anchored in the project budget, enabling precise financial planning and supporting adherence to agreed unit prices.
• Adherence to Contractual Framework and Legal Requirements: As the main contract is executed without subsequent changes or additional services, the project remains within the agreed contractual agreements and the provisions of procurement law.
• Avoiding change orders and review procedures: The main contract ensures that no unforeseen additional costs or services arise during contract execution, as all essential services are already included in the scope of work.

Components and Requirements of the Main Contract.

A main contract encompasses all services detailed in the Bill of Quantities (BoQ) for a construction project or real estate development. Typical components include:

• Construction Works: All works associated with the construction of the property, such as earthworks, foundation laying, shell construction, installations, and fit-out works.
• Planning and Consulting Services: Services rendered during the planning phase, including architectural, engineering, and expert appraisal services, as well as accompanying consulting services that comply with public procurement law requirements.
• Completion and Acceptance: All necessary works leading to the completion and acceptance of the project, such as inspections, tests, and documentation.
• Contractual clauses and legal provisions: Specifications regarding the terms and conditions under which the work is to be performed, including timelines, pricing agreements, scope of work, and compensation.

The Main Contract in the Real Estate and Construction Industry

In the real estate and construction industry, the main contract forms the basis for the implementation of a construction project. If the main contract is precisely and detailedly formulated in the bill of quantities, all project participants – from the client to the contractor and subcontractors – can clearly identify which services must be rendered at what time. Examples of main contracts in construction projects include:

• New Building Construction: The main contract includes all works required for the construction of a new building, excluding addenda or additional services.
• Refurbishment and Renovation: The main contract can encompass all services required for the renovation or refurbishment of an existing property.
• Infrastructure Projects: For large infrastructure projects such as road construction or bridge building, the main contract is precisely defined to ensure all required construction services are delivered within the specified framework.

Related Terms

• Bill of Quantities (BoQ)
• Construction Contract and Contract for Services
• Change Order Management and Change Order Execution
• Project Implementation and Contract Execution
• Contract Clauses and Remuneration Regulations

Main Contract in PROBIS – Efficient Management and Control

In PROBIS, the main contract is supported by detailed management of contractual services, order values, and budgets. The system enables:

• Recording of all commissioned services: All services defined in the main contract are transparently documented and managed, facilitating the selection and control of involved companies.
• Budget Monitoring and Price Management: PROBIS helps to monitor the financial framework of the main contract and ensure that the project remains within the planned budget and agreed unit prices.
• Change Order Management: Even if the main contract is executed without change orders, PROBIS supports the documentation of potential changes or additional services and their integration into the overall project, considering the applicable procurement guidelines.
• Reporting and Transparency: All relevant data and progress of the main contract are presented in clear reports, enabling transparent communication with all project stakeholders.

PROBIS ensures the main contract remains consistently under control, thereby guaranteeing efficient project execution and adherence to legal frameworks.

Conclusion: What is a Main Contract?

The main contract forms the contractual basis for the execution of construction and real estate projects. It encompasses all contractually defined services that are to be delivered without subsequent changes or amendments. PROBIS assists in efficiently managing the main contract, monitoring contract values and the project budget, and transparently documenting and legally processing all services.