This manual introduces the terms and procedures used in water utility construction project administration in the United States. It should be used as a resource in planning, designing, and managing construction projects rather than as a standard of practice. The manual is divided into three main sections. Section 1 discusses the common contracting issues associated with construction projects. This section covers traditional (owner-consultant-contractor) construction projects including the project phases and participant responsibilities. Also discussed are construction documents, project warranties, contractor selection, and performance clauses. The second section introduces nontraditional approaches to construction projects and administration. This section addresses owner construction management, construction management firms, multiple prime contracts, design-build and turnkey construction, and guaranteed maximum price construction management. Section 3 discusses general issues of contract administration including partnering, communication, contract disputes, payment procedures, and private sector financing.