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In this video, construction contracts are explained, focusing on their importance between clients wanting to build or remodel homes and general contractors. Four main types of construction contracts are outlined: 1. **Fixed Price** - A predetermined price encompasses all costs, with the client potentially adding a cap on total expenses.2. **Cost-Plus** - Clients pay the contractor for actual costs plus a percentage or fixed fee for profit.3. **Time and Materials** - Clients are charged for materials and labor at a negotiated rate, allowing the contractor to profit by marking up costs.4. **Unit Pricing** - Contracts may also be structured on a per square foot basis.The video aims to simplify the often complex nature of construction agreements.
