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The article discusses five essential elements of a construction contract, emphasizing their importance in the real estate industry. A construction contract is a binding agreement between the contractor and the project owner based on the specific project bid. Key components include the construction contract itself, a line-item sheet detailing project costs, and a scope of work document outlining every item in the line-item sheet. A standard construction agreement, often an AIA contract, involves an agreement between the owner, architect, and general contractor. The article briefly mentions different types of AIA contracts, such as the cost-plus contract.
