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Construction Law/1. Types and Forms of Contracts


Dear Sir,

I was searching to find about types of contracts and forms of contracts. Through the search, I get confused looking different explanations and types of contracts throughout the internet. I would really appreciate to give me an understanding of below queries:

1. What is type of contract and forms of contract itself and what are the difference between them

2. If types and forms of contracts differ, What are the types of contracts. How many types of contracts we have. If you please categorize it in order to avoid confusion.

3. Similarly, If types and forms of contracts differ, what are forms of contracts and how many forms of contracts do we.

I would really appreciate your concise response with regards to above questions.

Thank you in advance.

Dear Mohammad Adil
It is joyful to me listening you after a time period, I am trying to answer your questions;

1. There are a several types of construction contracts used in the industry, but there are certain types of construction contracts preferred by construction professionals.  Construction contract types are usually defined by the way the disbursement is going to be made and specifies other specific terms, like duration, quality, specifications and several other items.Every type of contract has a specific standard form of contract on which agreement made between the parties.

2.A construction contract is an agreement that outlines the way a construction job is executed and the specific amount of compensation for the job. Moreover, a construction contract is negotiated specifically for the construction of an asset or a group of interrelated assets.
The most common types of construction contracts used in the construction industry include:
a. Unit price contract– This contract type is based on anticipated quantities of items which are counted in the project in addition to their unit prices. The final price of the project depends upon the quantities required to carry out the work.
b. Lump sum contract– Under this contract type, the engineer or contractor agrees to perform the specified and described project for a fixed price. This type of contract is also referred to as a “Fixed Price Contract” and is very often used in engineering contracts
c. Cost plus contract– The cost plus contract is an agreement which involves the buyer’s consent to pay the complete cost for material and labor in addition to the amount for contractor overhead and profit.
d. Incentive contract – The incentive contracts feature compensation based on the contracting and/or engineering performance in accord with an agreed target – schedule, quality, and budget.
e. Percentage of construction contract- This contract type is common for engineering contracts. The compensation involved in these contracts is based on a percentage of the cost of construction.
3. The type pf forms of contract are of several types and it depends upon type of contract and applicable law of the country.

Above I have given most common types of contracts in construction industries. The forms means the proforma of agreement for type of contract and its depends upon type of contract and as well as applicable law of the country.

I hope this will help to you. If any clarification required come with follow up querry.

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Sanjay Khandelwal


I can answer related to the various construction contracts forms related with disputes and claims.Expertise in to evalute the extension of time,cost and profit claims.I can answer regarding the contract management in civil works.


I have the experience of construction industry, as a consultants,executor of construction activities of infrastructure development like road and buildings. I have the experience of various software related to design of highways and quantity evaluation.

I am life member of Indian Road Congress,INDIA I am presently employed with M/s Lion Engineering Consultants,INDIA

My educational qualifications are as below: I am engineering graduate from MITS, INDIA,1987 I have completed my Post graduation from NIT,INDIA,2011

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