Which statement is true about the construction contract?

• A. It is a legally binding set of documents typically between a contractor and the owner.
• B. It is always a verbal agreement.
• C. It is not legally enforceable.
• D. It is a document only for architect services.

Answer: (A)

A construction contract is a legally binding agreement that sets out what will be built, by whom, for how much, and under what terms. It is normally a written set of documents between the owner and the contractor (often with the architect or other professionals involved) that defines the scope of work, the price, the schedule, responsibilities, and the processes for changes, payments, and dispute resolution. Because it’s signed and intended to be enforceable, it provides remedies if obligations aren’t met. Verbal agreements can exist but are unreliable and hard to enforce, so saying it’s always verbal isn’t correct. It isn’t limited to architect services; it governs the whole project and the contractor–owner relationship, with the contract serving as the primary tool to allocate risk and establish how the project will be executed.