The 5 Most Common Types of Construction Contracts

The 5 Most Common Types of Construction Contracts | Fisher Stark, P.A., Asheville, NC

Fisher Stark, P.A., experienced Asheville construction law firm, helping navigate all aspects of construction.

Construction contracts mean avoiding common problems. By detailing specific ways projects large and small are executed, an experienced construction lawyer is helping clarify agreements, avoiding problems and bettering whole communities. Contracts address issues including specific amounts of compensation, aiding projects whether singular buildings or interrelated assets.

Construction Contract Lawyers

There are a several types of construction agreements. Preferring certain types of contracts, though, is common by construction professionals, depending on the job(s). Agreements are defining the way disbursements are made most often. So, by specifying specific terms like duration, quality, specifications and other relevant items, business lawyers help avoid problems before they arise.

Hiring an experienced Asheville construction law firm like Fisher Stark, P.A., means streamlining construction project before breaking ground.

Common Construction Contracts

The most common types of construction contracts in Asheville include:

  1. Unit price contract – anticipating quantities of items counted in the project. Specifying quantities in addition to unit prices are key to these contracts. So, depending on the item quantities required, negotiating a final price is determined by costs. Usually suitable only for construction and supplier projects, identifying different types of items but not their numbers.
  2.  Lump sum contract – performing detailed projects for fixed prices. Also referred to as a “Fixed Price Contract.” Often used in engineering contracts. Defining project scope and schedule means allowing project cost estimates.
  3. Cost plus contract – consenting to pay complete costs for materials and labor, in addition to contractor overhead and profit. Favoring highly uncertain or indeterminate scope of work, in addition to the labor, material and equipment similarly uncertain in nature.
  4. Incentive contracts – compensating performance based on agreed targets including schedule, quality, and/or budget. Commonly falling into one of two common categories: Fixed Price Incentive Contracts and Cost Reimbursement Incentive Contracts.
  5. Percentage of construction contracts – basing compensation on a percentage of construction costs. Commonly used for engineering contracts.
Asheville Construction Lawyers | Fisher Stark, P.A.

Fisher Stark, P.A., experienced construction law attorneys serving Asheville and surrounding communities.

Asheville Construction Lawyers

The attorneys at Fisher Stark, P.A., offering 60+ years’ Construction Law experience to streamline construction projects. Reviewing, drafting and negotiating clear contracts means minimizing the likelihood of confusion or disagreements, bettering our communities.

Proudly serving Asheville and surrounding Western North Carolina counties including Henderson County, Buncombe County, Haywood County, Transylvania County and Catawba County.

Call today if you have any questions about your construction project, 828-505-4300.