Understanding and Negotiating Construction Contracts: A Contractor’s and Subcontractor’s Guide to Protecting Company Assets

＂A construction contract provides a legal binding agreement for the owner and builder that says the executed job will receive the specific amount of compensation. It may also say how that compensation will be distributed. There are several types of construction contracts used in the industry, but there are certain types of construction contracts preferred by construction professionals. The four common types of construction contracts are lump sum or fixed price contract, cost plus contract, time and materials contracts, and unit pricing contracts.＂--

Kit Werremeyer is owner and president of Southernstar Consultants LLC, Valrico, Florida, US, which provides training in construction contract negotiations and other professional services for engineering and construction companies both in the US and internationally. He has more than four decades’ experience in negotiating fair and balanced construction contracts, sales, major project development, and construction contract dispute resolution.