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Understanding different types of construction contracts is crucial as they outline costs, liabilities, and other key aspects of the project, protecting both the builder and the owner by clarifying expectations and minimizing potential issues. There are several types of building contracts, typically tailored to project needs. This tutorial will explain the differences between these contract types and when to use each for your project. The builder represents the entity performing the construction, while the owner is the entity hiring the builder. The first type discussed is lump sum contracts, which involve a fixed price for all work done on the project.
