ARTICLE · 13 JULY 2023

The Most Important And Common Types Of Construction Contracts

De Grandpré Chait

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Understanding the differences between the main types of construction contracts available under Quebec construction law is the key to managing costs and determining everyone's obligations in a construction project.

CanadaReal Estate and Construction

Marilyn Tétrault-Beaudoin

David H. Kauffman

Etienne Chauvin

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Understanding the differences between the main types of construction contracts available under Quebec construction law is the key to managing costs and determining everyone's obligations in a construction project. Construction contracts affect everyone in the industry, including contractors, public and private owners, insurers, sureties and lawyers. This article by De Grandpré Chait lawyers Marilyn Tétrault-Beaudoin, David Kauffman, Étienne Chauvin and Hélène Mondoux outlines the most important and common types of contracts under Quebec construction law: the lump sum contract, the unit price contract, and the cost-plus contract.

The lump sum contract

The lump sum contract, also known as a fixed price or stipulated price contract, establishes a single, pre-determined price for the entire project. Lump sum contracts reduce the possibility for the price to rise or fall in response to situations that arise along the way. This type of contract is governed by Article

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