- Intro
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Welcome to the "Intro to Construction Contracts" course!
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Overview of construction contracts
- Contract Types
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Intro to contract types
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Lump Sum contracts
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Cost Plus contracts
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Guaranteed Maximum Price contracts
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Multi Party Agreement contracts
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Unit Price contracts
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Time & Materials contracts
- More About Contract Types
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Progress payments across contract types
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Projects across contract types
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How contract types compare
- Wrap Up
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Test your contracts knowledge
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Summary and key takeaways
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We want to hear from you!
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Conclusion
Intro to Construction Contracts
Master construction contracts and the strategic advantages and disadvantages of each contract type to effectively mitigate project risks.
Instructor: Janine Trinidad
1 hour
Published 6/2025
Video Content
Course Description
Construction contracts are the foundation of every building project, serving as legally binding agreements that clearly lay out what each party involved needs to do. Without contracts, projects can run into numerous problems during construction. This course will help you understand why these documents are so valuable for a project’s success.
The course content will delve into different contract types including lump sum, cost plus, guaranteed maximum price (GMP), unit price, time and materials, and multi-party agreements. We'll explore where each type is commonly used, from large public projects requiring bids to negotiated private work or repetitive tasks. Understanding each type is vital because they directly influence who takes on risk and rewards, how complete designs need to be, the administrative burden, how profit is earned, and how progress payments are made.
By grasping the strategic advantages and disadvantages of each contract type, you will gain the practical skills to make informed decisions, effectively mitigate project risks, and confidently handle construction complexities. You'll walk away with the tangible ability to choose and manage the right contract for any situation, ensuring smoother operations, better financial control, and successful project delivery across diverse scenarios.
Learning Objectives
Define contracts in construction.
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Define and identify contract types.
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Differentiate between contract types.
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Understand when to use one contract type over another.
Prerequisites
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Learning Level: Intermediate
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Prerequisite Knowledge: No prior knowledge of construction is required for this course.
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Recommended Knowledge: Knowledge of basic construction processes, project delivery methods, and project financial basics.
Continuing Education Course Credits
Course Title: Intro to Construction Contracts
Course Number: PC-447-060625
Session Number: 1
Curriculum Group Name: AIA Providers
Credit: 1 AIA LU
Course Expiration Date: 06/11/2028
Procore's Continuing Education courses may qualify for continuing education credits with other professional organizations or fulfill state licensing requirements. If you are a member of a different organization, you can download your course completion certificate from your learning profile and report your completion yourself to the organization for potential credit. Please refer to the organization's continuing education requirements for course eligibility information.
AIA CES Provider statement
Procore Technologies is a registered provider of AIA-approved continuing education under Provider Number 40108059. All registered AIA CES Providers must comply with the AIA Standards for Continuing Education Programs. Any questions or concerns about this provider or this learning program may be sent to AIA CES (cessupport@aia.org or (800) AIA 3837, Option 3).
This learning program is registered with AIA CES for continuing professional education. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the AIA of any material of construction or any method or manner of handling, using, distributing, or dealing in any material or product. AIA continuing education credit has been reviewed and approved by AIA CES. Learners must complete the entire learning program to receive continuing education credit. AIA continuing education Learning Units earned upon completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.
AIA continuing education credit has been reviewed and approved by AIA CES. Learners must complete the entire learning program to receive continuing education credit. AIA continuing education Learning Units earned upon completion of this course will be reported to AIA CES for AIA members. Certificates of Completion for both AIA members and non-AIA members are available upon request.
Frequently Asked Questions
What are the most crucial elements of construction contracts that this course will teach me to manage effectively?
This course will focus on the three elements present in every construction contract: scope, schedule, and cost. You'll learn why addressing these elements is vital to prevent numerous problems during construction.
Will this course teach what projects or scenarios each contract type should be used for?
Yes, you will get practical guidance on when and where to use each contract type effectively.
What's Next
Other Recommended Courses
Contracts, Copyrights, and Claims, Oh My! The 5 Expert Strategies Companies Use to Increase Profits Intro to Preconstruction Change Orders: Managing Expectations & Measuring Production and ProfitabilityRelated Resources
Instructors
Janine Trinidad
Janine Trinidad is a Construction Educational professional for Procore Technologies. In previous roles, Janine managed all phases of construction on hotel, mixed-use, and institutional projects in the San Francisco Bay area. She was responsible for negotiating contract budgets and change orders, managing RFIs and submittals, and overseeing quality control, among other duties. She is also a certified transformational coach with a focus on women-centered and trauma-informed methods. She is passionate about transforming the construction industry to be a healthier, more successful and welcoming place to work and believes technology and education are allies in doing so.