What is the primary purpose of a construction contract?

The primary purpose of a construction contract is to outline the terms and conditions of the construction project. This fundamental document serves as the legal foundation for the relationship between the parties involved in the project, typically the owner and the contractor. It details the scope of work, project timelines, quality standards, obligations of both parties, and provisions for changes or unforeseen circumstances. By clearly defining these aspects, the contract helps to ensure that all parties have a mutual understanding of their roles and responsibilities, which is crucial for the successful completion of the project.

While establishing payment schedules, assigning subcontractors, and estimating material costs are important elements that can be included in a construction contract, they are secondary to the overarching need to provide a comprehensive framework for the overall project. The contract serves to mitigate risks and misunderstandings, ensuring that all parties are aligned on what is expected throughout the construction process.