A cleverly drafted business contract can protect the interests of both parties, minimize risk, and increase profitability for the contractor. Duke and Carmen explained: “The higher cost with GMP provides a cap on total construction costs and fees for which an owner is responsible. If the party providing the work under this pricing method goes through GMP, it is responsible for these overruns. An increase in costs with GMP and an agreement to share cost savings can encourage both parties to a construction contract to work together as efficiently as possible. [14] Lump sum contracts, also known as fixed-price contracts, are the most basic type of construction contract. This is because they describe a fixed price for all the work under them. For this reason, lump sum contracts are extremely common in the construction industry. There is a good chance that most contractors have signed several lump sum contracts in the past. Agreements on the appointment of consultants, independent client advisors, site inspections, project managers, client representatives, etc.

can be found in the article on the appointment of consultants. A construction contract is a document that sets a date and determines which parties will participate in the construction process. As a general rule, the contractual agreement is concluded between the project owner and the contractor or supplier providing the requested services and contains several sections of clauses that define the scope, terms and conditions of such an agreement. Another maxim of legal construction is expressio unius est exclusio alterius. Roughly translated, this sentence means that everything that is omitted is understood as excluded. Thus, if a law provides for a specific sanction for non-compliance with the law, other sanctions are excluded and cannot be applied (Sprague v. State, 590 p.2d 410 [Alaska 1979]). The maxim is based on the reasoning that, if Parliament had intended to consider a particular remedy or allowance, it would have done so expressly; if the legislature did not provide for such compensation or such an event, it must be presumed that it did not intend to do so. The maxim is widely applied and has been used by courts to interpret constitutions, treaties, wills and treaties, and laws. Nevertheless, expressio unius est exclusio alterius has its limits. The courts have held that the maxim should be ignored in cases where a broad interpretation of a law leads to beneficial results or serves the purpose for which the law was enacted. Understanding this complex game of interpretation and construction is essential to understanding how the law determines the existence and content of contractual obligations.