ABSTRACT
A construction contract is a legal document that describes the rights and responsibilities of the contracting parties. The terms and conditions of their relationship are defined solely within the contract documents. Any of the contract documents can be modified by addenda or by change orders. Addenda are issued by the owner prior to award of the contract, and change orders are executed between the owner and the contractor after contract award. Any addenda, or later change orders, are also considered to be contract documents, assuming they are listed in the prime contract agreement. The prime agreement describes the project to be constructed, the pricing method to be used and cost, the time allowed for construction, and the names and points of contact of the project owner and the contractor. The technical specifications provide the qualitative requirements for construction materials, equipment to be installed, and workmanship. Contractors and project owners use a variety of risk management strategies, including insurance and bonds.
