§ 8010 Contract Price Definition

• •The 'contract price' is the amount of money agreed upon for a construction or improvement job.
• •This price is set in the direct contract between the person hiring and the person doing the work.
• •It only applies to work that improves something, like building or fixing a house.

You hire someone to build a new fence around your yard.

The amount of money you agree to pay the builder for the fence is the 'contract price'. This is the price written in the contract you both sign.