The type of contract you choose is generally based on what?

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The contract type is determined by the procurement method chosen because that method defines how the project will be delivered, who bears which risks, and how payments and incentives are arranged. Aligning the contract with the procurement route ensures the price mechanism and risk allocation match how the work will be organized and controlled. For example, with a traditional procurement where design is completed before construction, a fixed-price or lump-sum contract provides price certainty and clear duties. In designs that involve early contractor involvement or integrated teams, a cost-reimbursable or target-cost contract with shared risk and incentives may be more appropriate since price certainty upfront is harder to achieve. While budget, location, and timeline matter in practice, the fundamental determinant is the procurement method itself, which shapes the best way to structure the contract.