Looks like Option 2 is what I'm looking for. Option 3 makes sense but that would take all the fun out of it. Someone also mentioned "building blocks" in developer mode? It would be nice to type in a field "Time and Material" and then all the other blocks populate the Time and Material Terms and conditions. Conversly, someone types in "Fix Price" and all the terms populate. Out of the 30 clauses or so, only about 5 change based on the specific contract type.