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Construction law is made up of a specialized set of rules and regulations that govern how people behave in the context of a construction project. Because law is nothing more than an agreed-on set of guidelines by which we live together as a society, construction law is a subset of these agreements. The laws are specific to the circumstances of design and construction but have the same components of laws that govern our everyday life. The government has a specific role to play in developing and adopting these laws at the federal, state, and local levels. The involvement of each is based on the subject matter, but generally federal statutes take precedence over state or local laws. For most matters, the federal government will set minimum thresholds and allow the slates and local governments to regulate more strictly.

The courts also have a role to play in these laws - they interpret and enforce existing statutes and regulations. Through their interpretation, a body of common law has unfolded. Common law is the accumulated wisdom of the courts over time and serves as the basis for enforcement of the law. The courts exist at the federal level and at the state level. Most construction related disputes are heard in state court and resolved there.

Many disputes in construction are brought to the court's attention through some perceived breach of contract. Contracts define peoples relationships in a construction project. Several basic elements have to be present in order for the contract to be legal: an offer, an acceptance, some sort of payment, and the legal capacity of each party to make a binding agreement.

Once the enforceability of the contract is established, the courts will use a common established set of guidelines for making their decisions. They consider what is written first and foremost and use the plainest interpretation. They consider any existing statutes as a context, specifically any statutes of limitations that exist for the particular lawsuit. In deciding a case, the courts also address damages. Damages are usually awarded in the form of monetary redress for detect costs, indirect costs, or even punitive penalties, depending on the court's findings.

Although many disputes end up to the courts, more and more parties are turning instead to alternative dispute resolution methods such as arbitration and mediation. In addition, to avoid the costs and bad will that result from dispute resolution of any sort, participants are incorporating preventive measures such as partnering and alternative project delivery strategies into their projects to reduce the risks inherent in the construction projects of today.