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A construction contract is a mutual or legally binding agreement between two parties based on policies and conditions recorded in document form. Fixed-price, or lump-sum, contracts.Inevitably, this will prolong the project if it is not yet completed and may cause you to incur otherwise unnecessary legal expenses. The law of contract and the law of tort are central elements of construction law. 8 The Contractor shall give all notices and comply with all laws, ordinances, rules,. A construction contract is a legal document that outlines, in detail, the parameters of a construction project. A construction contract is an agreement between a client and a contractor that specifies the details of a construction project. The complete agreement between the contractor and the owner and a clear description of any other documents which are part of the agreement.