In any engineering construction, the engineering construction contract is essential. Engineering construction contract has a special position and function in engineering;

(1) The project construction contract determines the main objectives of project implementation and project management, and is the basis of various economic activities of both parties to the project.

The project construction contract was signed before the project was implemented. It determines the objectives of the project and all major and specific issues related to the objectives. For example, the engineering objectives determined in the engineering construction contract mainly include three aspects:

1) construction period. Including the start and end of the project and the specific dates of some major activities in the project.

2) Project quality requirements, scale and scope. Detailed and specific quality, technical and functional requirements, such as building materials, design, construction and other quality standards, technical specifications, construction area, production capacity to be achieved by the project, etc.

3) expenses. Including the total project price, unit price and total price of each sub-project, payment form and payment time, etc.

They are the goal and foundation of engineering construction and engineering management. Contract management in engineering is to ensure the realization of these goals.

(2) The contract stipulates the economic relationship between the two parties. Once the contract is signed, the two parties to the contract will form a certain economic relationship. The contract stipulates the economic responsibilities, interests and rights of both parties during the execution of the contract.

Fundamentally speaking, the interests of both parties to the contract are inconsistent. Inconsistency of interests leads to conflict of interests in the project process, which leads to inconsistency, disharmony and contradiction in project implementation and management. Naturally, both parties to the contract consider and analyze problems from their own interests and adopt some strategies, means and measures to achieve their own goals. But this will inevitably affect and damage the interests of the other party and hinder the smooth implementation of the project. Contract is the main means to adjust this relationship, which stipulates the responsibilities and rights of both parties. Both parties can use the contract to protect their own interests and limit and restrict each other.

(3) Contract is the highest code of conduct for both parties in the process of engineering construction. A contract is serious, legally binding, protected and restricted by law. Concluding a contract is a legal act of both parties. Once the contract is signed, as long as it is legal, both parties must fully perform their responsibilities and obligations stipulated in the contract. If you can't fulfill your responsibilities and obligations seriously, or even tear up the contract unilaterally, you will be punished economically and even legally. Except for special circumstances (such as force majeure factors, etc.). If the contract cannot be executed, both parties to the contract can't get rid of this legal binding force even if they lose money or even go bankrupt.

(4) The contract links the division of labor and cooperation of production, material and equipment supply, transportation, construction and other disciplines involved in the project, and coordinates and unifies the behaviors of all participants in the project.

Due to the need of socialized production and specialized division of labor, a project must have several, a dozen or even more participating units. The more developed the specialization, the more project participants, and the more important this coordination relationship is. In the process of project implementation, if one party breaches the contract and fails to perform the contract responsibilities, it will not only cause its own losses, but also hurt the contract partners and other project participants, and even cause the interruption of the whole project. If there is no legally binding contract, it is impossible to ensure that all participants in the project will complete their obligations on time, with good quality and quantity in all aspects of the project and every link of project implementation, and there will be no normal project construction order, and it will be impossible to successfully realize the general daily standards of the project.

Contract management must coordinate and deal with all aspects of the relationship, so that there is no contradiction between the relevant contracts and the engineering activities stipulated in the contract, so as to ensure the orderly and planned implementation of Ding Cheng.

(5) This contract is the basis for both parties to resolve disputes during the project. As the economic interests of both sides are inconsistent, disputes will inevitably arise in the process of project construction. Contract disputes are manifestations of economic conflicts of interest, which are often caused by different understandings of the contract between the two parties, changes in the performance environment of the contract, breach of contract by one party or failure to perform the contract correctly. Contracts play two decisive roles in dispute settlement:

1) The judgment of the dispute is based on the contract. That is, to judge the nature of the dispute through the terms of the contract, whose responsibility the dispute is and what kind of responsibility it should bear.

2) The method and procedure of dispute settlement are stipulated in the contract.

So it is necessary to sign a contract.