FAQs
What are the 3 elements of a construction contract?
A construction contract typically includes three essential elements: an offer, acceptance of that offer, and consideration, which involves something of value exchanged between the parties, such as payment for services or goods rendered.
What is the most common type of contract in construction?
The most common type of contract in construction is the lump sum or fixed price contract. In this arrangement, the contractor agrees to complete the project for a specified price, providing the client with predictability and financial security.
What are the 4 types of contract?
There are four main types of contracts used in construction: lump sum or fixed price contracts, cost-plus contracts, time and materials contracts, and unit price contracts. Each type offers distinct advantages and disadvantages, catering to different project requirements and client preferences.