In the case of a statute, certain construction cannons may help a court determine what the authors of the statute – usually congress or state legislative power – mean by the language used in the law. Where a dispute is a contract, a court applies other interpretive or construction canons to determine what the parties to the agreement intend to terminate at the time the contract is concluded. Duke and Carmen stated: „Cost-plus with GMP provides a cap on construction costs and total costs for which an owner is responsible. If the party that provides the work according to this method of price goes through GMP, it is responsible for such overruns… Cost-pluses with GMP and a cost-sharing agreement can encourage both parties to enter into a construction contract in the most efficient way possible.  Under a lump sum contract, the contractor and contractor agree before work begins on a „fixed price“ for the work to be carried out. This contract may also apply to housing and industry contracts. It may be a greater risk to the contractor because there are fewer mechanisms that allow the contractor to vary its price. A „reference date“ is a reference date from which changes in conditions can be assessed. In a work market, the inclusion of a base date is generally used as a mechanism for the distribution of risk between the owner and the contractor for changes that could occur between the contractor`s pricing of the offer and the signing of the contract.
This can be a very long time and the changes that occur can have a significant impact on the cost of the work.  Snagging refers to a procedure in which the owner or owner`s representative looks for defects that the contractor must correct before the final payment. The British Consumer Organisation What? notes that the most common problems encountered by the residential real estate survey are generally related to the completion of cleaning, tiles, baseboards and exterior masonry.  If the lowest rate and reference position among contractors are already indicated before the opening of the offer, the percentage is used. Order percentage is a type of order for which there is no possibility of an unbalanced offer. This type of agreement defines very well the purpose and scope of the agreement. By this alternative, the provisions and contractual terms of each party are clearly understood. A subcontract is primarily a contract between a contractor or a prime contractor and a subcontractor. It describes the limitations of specialized work to be done for the construction project.
 A construction contract is a reciprocal or legally binding agreement between two parties on the basis of guidelines and conditions recorded as a document. The two parties involved are one or more landowners and one or more contractors. The owner, often referred to as an „employer“ or „customer“, has full authority to decide what type of contract should be used for a specified construction period and to set legally binding conditions in a contractual agreement.  A work contract is an important document because it describes the extent of the work, risks, obligations and legal rights of the contractor and the owner. Unit cost contracts offer greater flexibility in the event of a deviation of land quantities and are therefore still used for heavy construction and motorway contracts.  Associated General Contractors of America (AGC) notes that this type of contract is not widely used for the entire project and is primarily used for contracts with subcontractors whose identification of different quantities is important and is often used for repair and maintenance work. For this reason, „it is not particularly useful for most private construction projects, except as part of a lump sum or cost-plus contract, which applies to certain components of tasks such as distance or filling of dirt, manufacturing equipment, etc.“  The specific provisions depend on the concrete form of the treaty that is adopted.