A contract is basically an agreement between two parties creating a legal obligation for both of them to perform specific acts. Each party is legally bound to perform the specified duties such as rendering a payment or delivering goods.
Contract in human activities is so general under legal contest. In construction, the main important thing is that work information is enough to carry out the works though Contract also can be seen every projects.
The reason behind to include the contract is for helping to parties to overcome the situation where something goes wrong then no parties are willing to accept the fault or consequence of the problem.
The following are the various types of contracts for execution of civil engineering works:
- Lump Sum or Fixed Price Contract
- Measurement contract
- Turnkey Contract
- Design and Build
- Cost plus Contracts
- Unit Price Contracts
- Time and Material Contracts
- Item rate contract
- Percentage rate contract
- Labour contract
- Piece-Work agreement
- Target Contract
