This outline is intended to define the types of building contracts presently being used in the construction industry as an aid to owners, consultants and others in selecting a type of contract best suited for a particular project.

The procedures for selecting the organization to supervise and perform building construction, and the types of contracts available for use, have proliferated in recent years because of the increasing complexity of building designs, escalating costs, legal constraints, magnitude of public projects, accelerated social needs, and increasing demands on owner staff.

The qualified general building contractor is the correct choice to properly supervise and construct the owner's project. He has the reservoir of experienced personnel, expertise in cost control and estimating which he has gained in undertaking work at his own risk. He commands a trade following of subcontractors, engineering and construction know-how, and knowledge of both union trade jurisdictions and open shop practices, safety training & requirements, as well as manpower availability.

The Architects, Contractors and Engineers Committee suggests that the general contractors under any of these contracting methods be selected by the owner on a completely objective basis taking into account his skill, integrity and responsibility, in equal and fair competition with his peers.

Text reprinted from Associated General Contractors of America Publication #650, entitled "Owners Guide Building Construction Contracting Methods" with permission. This document is available at the AGC of NH chapter office.