types  of contracts
Types of Contracts. Commonly used engineering and construction contracts. Some common types of contracts are used in the engineering and construction industry: Lump Sum Contract. Unit Price Contract. Cost Plus Contract. Incentive Contracts. Percentage of Construction Fee Contracts.
Contract Types. Contract types are generally grouped into two broad categories: fixed price contracts and. cost reimbursement contracts. 1. Fixed Price Contracts: a. A price that is not subject to any adjustments. b. Places upon the contractor maximum risk and full responsibility for all.
Formal contracts are contracts that are required to be written to be enforceable or valid. Formal contracts are not considered legal contracts unless they are written with certain language as required by law. Types of formal contracts include contracts that require seals, negotiable instruments and recognizances. Sealed contracts are not commonly used today because of the inability to amend the contract.
An example of an express contract is a parole contract. A parole contract is any contract that is not required to be under seal or of record. Express contracts are based solely on the statements of the party or what is written in the contract.