If the contract was made with a federal administrative agency, the contract will be governed by the Federal Acquisition Regulation, a set of federal laws on government contracts. If the construction touches on a federal concern, the case may be governed at least in part by federal law, depending on the issues in the case. Construction contract disputes may be brought in state court. In cases where the disputing parties live in different states, the matter may be tried in federal court. Absent an applicable federal statute or regulation, the case would be tried under state laws.
Construction contracts create numerous relationships.
Each of these parties has rights within the contractual relationship, as well as duties to the other parties. Property owners and construction professionals alike find the construction process to be a dizzying maze of obligations and intertwined relationships. To make the contracting process easier, professional groups have developed uniform samples of construction contracts. The American Institute of Architects and the Associated General Contractors both publish standard contracts for parties to construction agreements. The owner of the property is legally obligated to perform a variety of pre-construction tasks.