Basically, construction contract types define the way contactor payment will be made and other specific contract terms, details like quality of the work, project duration, penalties for delays, specifications, and some other items. Types of construction contracts . Types of Construction Contracts. The best type of contract for a particular construction project will depend on a variety of factors, including the type of building project and the goals of each party. Lump Sum or Fixed Price. In a “lump sum” or “fixed price” contract, Construction contract types typically define the project scope, duration, technical requirements, quality, specifications, payment method, and other important requirements. In this article, we will discuss pros and cons of construction contract types and their key aspects from a construction law point of view. Common Types of Construction Contracts