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Lump sum contracts use a fixed price for all work done on the project, protecting both the builder and the owner by ensuring clear expectations and avoiding potential issues. Different types of building contracts are tailored to the needs of the project, and understanding them is crucial for construction projects. There are four main types of construction contracts: 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.
