Top 5 Types of Construction Contracts You Must Know

Welcome to our in-depth guide on construction contracts! In this video, we'll break down the five essential types of construction contracts every builder, contractor, or property owner should know about. Whether you're a seasoned professional or just starting in the construction industry, understanding these contract types is crucial for a successful project. 🔨 Fixed-Price Contracts: We explore the benefits and drawbacks of this common contract type, where the project's cost is set in stone from the start. 🔄 Cost-Plus Contracts: Learn how cost-plus contracts work, offering transparency but potentially higher expenses for the project owner. 🤝 Time and Material Contracts: Discover the flexibility and challenges of time and material contracts, where project costs and timelines can fluctuate. 🏗️ Design-Build Contracts: Explore how design-build contracts streamline the construction process, making it a popular choice for many. 📜 Unit Price Contracts: Uncover the unique features of unit price contracts, perfect for projects with uncertain quantities. By the end of this video, you'll have a solid grasp of these construction contracts and their implications. Want to skip around? Here you go: 00:00 Intro 00:27 Types of Construction Contracts 01:15 Lump Sum Contract 01:58 Time & Material Contract 02:46 Unit Price Contract 03:07 Guaranteed Maximum Price Contract