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Understanding different types of construction contracts is crucial as they impact your payments, liabilities, and project outcomes. Contracts protect both the builder and owner by clarifying expectations and preventing potential issues. There are various types of contracts tailored to project needs. In this tutorial, we explain the differences between them and when to use each. The four main types discussed are lump sum contracts, cost-plus contracts, time and materials contracts, and unit price contracts. Each type has its own advantages and considerations, so it's important to choose the right one for your project.
