Types of Construction Contracts
Construction contracts between an owner and a contractor may be classified according to the nature and size of the project, legal requirements, and the owner’s preferences, which in turn depend on the owner’s sophistication in construction matters.
Construction contracts may also be classified according to
- The method of pricing the project, such as
- Lump-sum contracts,
- Cost-plus contracts, or
- Cost-plus with a guaranteed maximum; or
- The extent of the drawings and specifications, such as
- Contracts with complete drawings and specifications,
- Design-build contracts, or
- Fast-track contracts.