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How To Write A Construction Contract With 7 Steps Step 1: Define the Parties Involved. Step 2: Outline the Scope of Work. Step 3: Establish the Timeline. Step 4: Determine the Payment Terms. Step 5: Include Necessary Legal Clauses. Step 6: Address Change Orders and Modifications. Step 7: Sign and Execute the Contract.
There are several types of construction contracts, but the most common include four primary types: Stipulated Sum Contract, Cost Plus Contract, Design-Build Contract, and Integrated Project Delivery Contract.
The four main types include residential, commercial, industrial and infrastructure construction, but there are other types of construction as well as different ways to classify them, such as by sector, owner, occupancy or fire resistance.
The basic elements required for the agreement to be a legally enforceable contract are: mutual assent , expressed by a valid offer and acceptance ; adequate consideration ; capacity ; and legality .
Lump-Sum contracts are the most frequently-used contract, particularly for building construction. The idea is that all aspects of the project are pre-determined and laid out in a fixed scope of work. The cost is known and upfront for the owner, and the contractor is able to manage expectations.

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10 Different Types of Contracts Type of ContractEveryday Use Implied Contracts Common in everyday transactions like dining out. Express Contracts Standard in formal business agreements. Simple Contracts Used for straightforward services or transactions. Unconscionable Contracts Often challenged in court for fairness.10 more rows Jul 18, 2024
How to write a contract agreement in 7 steps. Determine the type of contract required. Confirm the necessary parties. Choose someone to draft the contract. Write the contract with the proper formatting. Review the written contract with a lawyer. Send the contract agreement for review or revisions.
4 Types of Construction Contracts Lump-Sum Contracts. Cost-Plus-Fee Contracts. Guaranteed Maximum Price Contracts. Unit-Price Contracts.

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