Construction Contracts Law and Legal Definition

Construction law may embody improvements of all sizes and complexity from basic, residential work, to enormous, complex projects of hydroelectric impoundment and generation, city planning, and mass transportation. While construction law cuts across a broad spectrum of laws, it is still closely interrelated with many of the traditionally recognized principals and doctrines of the law, including: real property, contracts, torts, business organizations, labor, tax, and (possible) conflicts of laws.

Contract terms and definitions in construction contracts are very important, because they eliminate ambiguity and misunderstanding; they also govern the specific understanding and agreement of the parties to the contract, and provide the framework for interpretation and resolution of construct contract claims under the laws of each state.

The following is an example of a federal statute defining Construction Contract:

According to 25 USCS § 450b, construction contract means a fixed-price or cost-reimbursement self-determination contract for a construction project, except that such term does not include any contract--

(1) that is limited to providing planning services and construction management services (or a combination of such services);

(2) for the Housing Improvement Program or roads maintenance program of the Bureau of Indian Affairs administered by the Secretary of the Interior; or);

(3) for the health facility maintenance and improvement program administered by the Secretary of Health and Human Services.);