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What Are the Four Types of Construction Contracts? With a lumpsum contract, the contractor delivers the project at a preset price.A general contractor construction agreement can have numerous clauses, but any solid agreement should contain some fundamental provisions. The extent to which the common law, which would usually apply, is adhered to. Ensure that you have read the entire contract and understand the terms. A construction contract is a formal agreement of terms between an owner and a contractor or specialist who intends to take up a job. 1. What is a Construction Agreement? Fixedprice contracts are most commonly used for construction contracts.