What document outlines the roles and responsibilities of each party involved in a construction project?

The project agreement or contract is a foundational document in any construction project that delineates the roles and responsibilities of each party involved. This document serves as a legal agreement between the owner and the contractor (and may also include subcontractors and suppliers), outlining specific obligations, rights, and expectations from each party.

A well-drafted project agreement will typically cover aspects such as the scope of work, timelines, payment terms, and procedures for addressing changes or disputes. These details are crucial for ensuring that all parties are aligned on what is expected, which helps to minimize misunderstandings and conflicts during the project.

In contrast, other options do not fulfill the same purpose. A claim for change orders addresses modifications to the original scope but does not establish roles and responsibilities. A project update report is designed to provide current information on the progress of the project and may include performance metrics or upcoming tasks, but it does not define roles. Lastly, the final billing statement is a financial document summarizing costs incurred upon project completion, but it does not provide an overview of party responsibilities or obligations throughout the construction process. Thus, the project agreement or contract is the correct answer, as it is the primary document that outlines the essential roles and obligations of all involved parties.