Which document outlines the terms of payment and project expectations for a construction project?

The contract is the foundational document that outlines the terms of payment and project expectations for a construction project. It serves as a legally binding agreement between the parties involved, detailing the scope of work, responsibilities, timelines, payment schedules, and any other conditions relevant to the project. A well-structured contract ensures that both the contractor and the client have a clear understanding of their obligations, minimizing the potential for disputes and misunderstandings.

While an invoice is used to request payment after services have been rendered, and a purchase order facilitates the procurement of goods or services under a separate agreement, neither of these documents sets out the comprehensive details regarding project expectations and terms of payment. A bid proposal outlines the contractor's offer to complete a project, including pricing and specifications, but it does not finalize the terms and conditions that both parties would agree to before the project begins. The contract is the document that formally consolidates all of these aspects into a single authoritative agreement.