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The concept of construction is broad and encompasses everything from the construction of roads, building of properties, to more specific areas such as roofing and drilling. In light of this, the contracts drafted within construction law vary greatly. What is unique about construction law, compared to other legal areas, is that the field is not extensively regulated by law in many aspects. Instead, it is the industry actors who, through their interest organizations, have developed standard contracts, known as general provisions, and other regulations that contractors, consultants, and clients can use. Different standard contracts regulate different situations depending on how the construction is organized. These construction forms can be divided into two main forms: total contracts and execution contracts. Depending on which construction form is used, different contracts will be used, ABT 06 for total contracts and AB 04 for execution contracts. It's worth noting that if the client is a consumer, the Consumer Services Act applies.
Since there is no law regulating the relationship when a company procures services from another company, interpretation problems easily arise. To avoid disputes, it is recommended that clients and contractors hire construction lawyers to prevent any potential conflicts. In the event of a dispute, many parties choose to resolve the dispute through arbitration, which is not public.