The point of a construction contract is to detail the exact terms of the agreement between an owner and a builder, and there should be no room for interpretation. There’s no such thing as an overly detailed contract.
All types of construction contracts define a timeline, budget, quality requirements and other aspects that need to be defined in every construction project. The two main differences between these types of construction contracts are the way in which the disbursement is going to be made and the risks and rewards that are assumed by each party.
Construction contract. The two parties involved are one or more owners, and one or more contractors. The owner has full authority to decide what type of contract should be used for a specific development to be constructed and to set forth the legally-binding terms and conditions in a contractual agreement. `.