Almost every construction project starts off with a contract, but very few projects evolve exactly as planned. Materials arrive late, drawings show conflicts, subcontractors overlap in their schedules, owners change their minds about what they want, weather interferes and costs fluctuate. These situations often lead to disputes involving money, time, quality or responsibility.  The outcome of these disputes is almost always determined not by what seems fair, but by what the contract says.

This course explains how various types of contract structures operate in practice. Rather than relying on abstract legal theory, the course focuses on how contract types affect real-world decision-making on the jobsite and in the office. The goal is not to turn contractors into lawyers. Instead, the course enables contractors to recognize risk, ask the right questions and make informed choices before signing an agreement.

After completing this course, participants will be able to:

1. Explain how different construction contract types allocate risk between owners and contractors.
2. Identify the key characteristics, advantages and risks of lump-sum, cost-plus, design-build and construction management contracts.
3. Describe the purpose and importance of change order management, including notice requirements, under lump-sum contracts.
4. Distinguish between a Construction Manager at Risk (CMAR) and a Construction Manager as Agent (CMA) and explain the risk implications of each.
5. Recognize the documentation and transparency obligations that come with cost-plus and T&M contracts.
6. Explain how design-build contracts expand a contractor's liability, including responsibility for design consultant errors.
7. Understand the function of flow-down provisions and conditional payment clauses (pay-when-paid/pay-if-paid) in subcontract agreements.
8. Apply best practices for contract review, documentation and notice compliance across all contract types.
9. Evaluate the administrative burden, dispute patterns and cash flow implications associated with different contract structures.
10. Assess whether a given contract type aligns with a contractor's risk tolerance, staffing and operational capabilities.