What is the most common form of construction contract?

The most common form of construction contract is the fixed-price contract. This type of contract establishes a specific price for the entire scope of work before the project begins. The fixed price serves as a clear reference point for both the contractor and the client, which simplifies budgeting and financial planning.

With a fixed-price contract, the contractor agrees to complete the project for that set price, and any cost overruns due to unexpected issues are typically the contractor's responsibility, unless specified otherwise in the contract. This arrangement incentivizes the contractor to control costs and manage efficiency effectively, thereby potentially increasing their profit margin if the project is completed under budget.

This predictability in costs is a major advantage for clients, making it attractive in many scenarios, especially for projects with well-defined scopes and lower risk for unforeseen changes.