An agreement governing the technical, financial and legal relationship between two or more parties to perform any act, provided that such action is not contrary to law. Engineering contracts govern the relationship between the parties involved in the engineering project and must be clear and precise in determining the rights and duties. This identification is one of the key factors for successful completion of contracted work in a timely manner. For the contract to be valuable, it must be in accordance with the law, otherwise it becomes meaningless and can not be implemented or adopted as a judgment or evidence in judicial proceedings. There is a difference between government contracts and private contracts. Government contracts are an administration, and government contracts rely on open competition, unless there is a reason for excluding them. Usually the tender is awarded to the lowest competitors, the cost and the choice of others.