The subject of this graduation thesis is a construction contract. It will be presented historical development of the construction contract. The thesis deals with essential elements of the construction contract and participants in the fulfillment of the construction contract. It also deals with rights and obligations of contractual parties and contractual penalty. The construction contract was developed from the contract for work and there is comparation of differences between these two contracts. The construction contract is regulated by the Civil Obligations Act (Articles 620 to 636) and some aspects are regulated by the Construction Act. This Act regulates the designing, construction, use and maintenance of buildings, as well as the implementation of administrative and other procedures with regard to protection and planning of environment in accordance with provisions governing the environmental planning and assurance of basic requirements for buildings. Special Usages for Construction are also important for the construction contract if they are not excluded in whole or in part by the contract.