Construction contract is simply mutual or legally binding agreement between two parties based on certain policies and conditions generally recorded in documentation form. The two parties involved are owner and contractor. The owner has full authority to decide what type of contract should be used for a specific facility to be constructed and to set forth the terms and conditions in a contractual agreement. Companies seeking to build an office building or industrial facility can document their agreement with the contractor through a construction contract. The contract will specify the scope of the work, which may include pre-construction services, bid analysis, and coordination with architects and subcontractors. The contract should include necessary payment and project completion schedules. In the event of a dispute, the parties may require the dispute to be resolved through arbitration, and any damages to be determined according to a liquidated damages clause.