Many engineers are involved in the construction of facilities. Even if you do not work in the construction industry, you may be called upon to work on a construction project in some capacity. For example, you may work at a research lab and need to oversee the design and construction of a facility, or work for a utility or manufacturing company that is expanding, upgrading, or mothballing facilities, all of which may include extensive design and construction. At a personal level, you may build your own house, or, as an engineer, be called upon by your neighborhood association or other organization in which you are involved to provide assistance or input into local construction projects.

The nature of all projects requires focus on three basic goals: quality, cost, and time. A successfully managed project is one that is completed safely at the specified level of quality, on or before the desired deadline, and within the available budget. Each of these goals is specified in detail and constitutes the plan of the project. These specifications then form the basis for project control, or management; the PPC module "Project Management" provides an introduction to this process.

An element of project management is the establishment of contracts defining and governing the project. Many types of contracts exist for the design and construction of projects, describing the scope, or quality, of the project (the detail of which may vary widely), the relationships of the parties involved, the compensation for work, the distribution of risk among the parties, and other legal aspects of the project. In selecting and defining the contract to use for a construction project, a thorough understanding of your situation and careful consideration of the pro and cons of the various options are crucial to the success of a project. This module will introduce you to the parties and the types of contracts involved in construction projects, their advantages and disadvantages, and considerations involved.

There are generally three parties involved with the design and construction of a project: the owner, the engineer and the contractor (also known as the constructor). In many cases, these functions may be combined or further divided. For example, a project owner may also be the engineer or hire one organization to perform both the engineering and/or construction, or the owner may decide to hire multiple engineers and contractors to provide the engineering and construction services. Contracting options must reflect the risks of all parties to a contract.

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