The Contracts used in public construction projects have additional contractual implications on the part of the constructor as well as the owner, due to the special regulations on governmental procurement and the restrictions enforced by the local law for building development. Based on the contracts used by government agencies, this paper attempts to analyze and make comparisons of the problems of this practice. The major conclusions in this research include: (1) the legality of the contract used in public construction projects should be determined by the common law, the building development law and regulations for governmental procurement through competition and/or integration; (2) the exculpatory clauses used in these contracts are detrimental to the contractual relationship; and (3) more flexible reinforcing measures are required for the preparation of government construction contracts.