business owners signing construction building contract

The contract is the legal act concluded by the agreement of will between the acquiring entity (investor) and the contractor (bidder) that will carry out the construction project.

Types of contracts

The main types of contracts used in construction can be grouped into four categories.

  1. Traditional contracts

Clients or their project managers hire architects to prepare the technical project, select contractors and supervise construction works. The main forms of traditional contracts are total price contracts and unit price contracts.

  1. Reimbursable cost contracts

As in the case of standard contracts, the client uses architects to carry out the technical project and supervise the execution of the construction. The main feature of these contracts is the payment of a fee, in a fixed amount or as a percentage of the direct costs, value These costs will be reimbursed to the contractor as the works are executed.

  1. Other forms of contractual arrangements
  • Partnerships
  • Construction, Property, Operation, Transfer contracts
  • Bidding in two phases
  • Serial contracts
  • Global contracts
  • Separate contracts
  • Realization of the project with own means
  • Subcontract
  1. Management contracts


The selection of the type of contract that will be used for a construction project must take into account the characteristics of the project and the particularities of the client organization. This is an essential element for the successful completion of the project and therefore great attention must be paid to it and it must be done as soon as possible, right after the initiation of the project.  For renowned construction company talk with Haselden Construction.