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This video tutorial explains the creation of construction contracts between clients and general contractors, highlighting the four main types of contracts. 1. **Fixed Price**: A predetermined price covers all materials and labor, with the contractor potentially profiting through a fixed fee or percentage of total costs, including provisions for cost caps. 2. **Cost Plus**: The client pays for actual materials and labor, allowing contractors to profit from their markup on expenses. 3. **Time and Material**: The client pays the contractor for materials and labor at a negotiated rate, with the contractor profiting by charging more than their actual costs. 4. **Unit Pricing**: Contracts may also be priced per square foot, accommodating projects by the area covered. The video promises to simplify these contract types and guide viewers in creating their own.
