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' A '''construction contract''' is a mutual or legally binding [[Contract|agreement]] between two parties based on policies and conditions recorded in document form. The two parties involved are one or more [[owner]]s, and one or more [[General contractor|contractor]]s. The owner has full authority to decide what type of contract should be used for a specific development to be constructed and to set forth the legally-binding terms and conditions in a [[contractual agreement]].<ref name="Contracts">{{cite web | url=http://civilengineerlink.com/common-types-construction-contracts/ | title=Main types of contracts | accessdate=23 October 2014}}</ref> ==Types== The six types of contracts are: *Lump sum contract *Item rate contract/schedule contract *Lump sum and scheduled contract<ref name="Common types of construction contracts">{{cite web | url=http://construction.about.com/od/Construction-Management/a/Types-Of-Construction-Contracts.htm | title=Common types of construction contracts | accessdate=23 October 2014}}</ref> *Cost plus fixed fee contract *Cost plus percentage of cost contract *Special contracts<ref name="A text book of Production Planning and Management">{{cite book | title=A text book of Production Planning and Management | author=Dr. B.C Punmia | year=2014}}</ref> ===Lump sum contract=== In a lump sum contract an owner agrees to pay a contractor a specified lump sum after the completion of work without a cost breakdown.<ref name="Business dictionary1">{{cite web | url=http://m.businessdictionary.com/definition/lump-sum-contract.html | title=Business dictionary | accessdate=17 October 2014}}</ref> <ref name="Lump sum contract">{{cite web | url=http://construction.about.com/od/Procurement-Process/a/Lump-Sum-What-Is-A-Lump-Sum.htm | title=Lump sum contract | accessdate=17 October 2014}}</ref> After work no detailed measurements is required. ===Lump sum and scheduled contract=== This is a lump sum contract that requires a cost breakdown. ===Cost plus fixed fee contract=== In hi bro ===Cost plus percentage of cost contract=== In cost plus percentage, the owner pays greater than 100 percent of the documented cost, usually requiring detailed expense accounting.<ref name="Business dictionary2">{{cite web | url=http://m.businessdictionary.com/definition/cost-plus-percentage-contract.html. | title=Cost plus percentage of cost contract | work=by Owais Khursheed | accessdate=20 October 2014}}</ref> ===Special contracts=== {{expand section|date=August 2016}} Special contracts are further classified into five types: *Turn key contract *Negotiated contract *Package contract *Continuing contract *Running contract<ref>{{cite book | title=Production Planning and Management | author=Dr. B.C. Punmia | date=17 October 2014}}</ref> ==See also== * [[Economics]] * [[Engineering, procurement and construction]] ==References== {{reflist|30em}} [[Category:Civil engineering]] [[Category:Engineering]]'