Introduction The definition of a building contract takes the same form as any other general contractor. The building contract, like any other contract, is a legally binding agreement that arises out of an offer from the employer and the acceptance from the contractor. It becomes legally obligatory on the part of both the parties to perform their part of the contract diligently and to the satisfaction of the other party. The building contract may be one that is applicable to a small building maintenance work as well as to the construction of a housing complex or any other large building. Thus the essence of a building contract is to build something irrespective of the size or amount involved. It is always advisable to reduce the building contract in writing since there is every chance the verbal agreement may be misused against either party if any one of them proves to be unscrupulous. The Standard Form of Building Contract (published by Hong Kong Institute of Architects and Hong Kong Institute of Surveyors) contains clauses that are usually referred to as Conditions. These are, in fact, express terms to which the signing parties expressly agreed. Apart from express terms, there are other categories of terms that exist in building contracts which are known as implied terms. This paper examines the nature and extent of the implied terms of the building contracts. Type of Contract There are two alternative forms of construction contracts that can be employed for the proposed construction activity. It can be taken up in the traditional form of a design-bid-build construction project or a design and build contract. In the design-bid-build contract, which is traditionally were being awarded as a design-bid-build contract in which the employer enters into separate contracts for designs as well as for construction. The contract for design is entered into with professionals like architects. The architect, in turn, may employ other professionals like engineers. On completion of the design process and approval by the employer, tenders are invited for the building on the basis of the completed design and the best bidder in terms of price and reputation is awarded the construction contract (Joseph G. Springer, 2000). Conditions to the Building Contract While the building contract is made into a written one, it will contain all the essential ingredients of a valid contract. But most of the time, it may not be possible to incorporate every term of the contract into a written one. Whichever conditions have been incorporated into the written contracts and agreed to by the parties to the contract by signing the contract, the conditions so included becoming the express terms of the contract. Apart from the express terms, there are certain other terms that are understood to be existing at the time of entering into any building contract. These are normal to the construction industry, and by entering into the written contracts, the parties to the contract also agree to these additional conditions, which form part of the building contract. These conditions are known as implied terms of the contract. Especially in a design and build contract where the contractor is mad