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Various types of construction contracts

by | Apr 5, 2021 | Construction Law |

Company owners who are preparing to engage in business relationships with other parties may wish to take every possible measure to safeguard their interests in the process. Construction contracts are just one example of a step that could help individuals in California achieve such goals. Such contracts come in numerous forms, each of which may function in its own way and be designed to offer its own set of possible advantages. 

Contract types 

Fixed price contracts are one example of such arrangements in which each of the parties involved must reach an agreement on a set price for project expenses. However, this does not mean that a fixed price contract is devoid of flexibility, as one may also have the option of discussing terms concerning the possibility of incentives and how to address disputes. Cost plus contracts are also common in the construction industry and such agreements could be a more favorable option if the scope of a project remains unclear. 

Those who prefer to set hourly or even daily rates instead of agreeing on a fixed amount could consider implementing a time and material contract. Such an agreement could also include terms on how to handle expenses stemming from operations. Unit pricing contracts are another type of construction agreement and such arrangements may also provide flexibility should the scope of work change over time. 

Addressing the options 

Company owners who wish to protect their interests may still remain uncertain of how to tell which type of construction contract might be the best fit for the situation. Fortunately, there are attorneys who can address the circumstances a person in California is facing and provide advice on all the available options. Such advice could help place a person in a better position to make informed choices and choose the path that best aligns with his or her needs and interests.