What is the basic purpose of a written contract between the owner and the contractor?

The basic purpose of a written contract between the owner and the contractor is to specify the rights and obligations of each party. This clarity is essential as it outlines what is expected from both sides concerning project scope, costs, timelines, and other critical elements of the agreement. By defining these aspects, the contract helps to prevent misunderstandings and disputes that could arise during the construction process. When both parties are aware of their responsibilities and entitlements, the project can proceed more smoothly, ensuring that all parties are held accountable according to the terms they agreed upon.

While enforceability is an important consideration associated with written contracts, the primary function is ensuring all rights and obligations are clearly stated. The notion of a unilateral agreement does not accurately reflect the mutual nature typical in a contractor-owner agreement, and likening the contract to a mortgage does not capture its fundamental role in construction projects. A mortgage pertains to financing and property rights, which is distinct from the operational dynamics between an owner and a contractor in terms of project execution.