Which document outlines the terms under which a construction company operates?

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The Construction Agreement is the document that outlines the specific terms and conditions under which a construction company operates. This agreement typically details the responsibilities of each party involved, including the scope of work, payment terms, timelines, and any legal obligations. It serves as a formal contract between the contractor and the client, establishing the expectations and requirements for the project.

A Project Charter generally defines the objectives and high-level requirements of a project but does not delve into the operational specifics or contractual obligations. A Bid Proposal is more concerned with the preliminary offer submitted by a contractor to perform the work, outlining estimated costs and project approach, rather than the binding terms of operation. A Construction Manual serves as a guide for processes and standards but does not serve as a contractual document outlining the terms of the engagement between parties. Thus, the Construction Agreement is the essential document that ensures all parties are aligned on their roles, responsibilities, and legal requirements for the duration of the construction project.

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