Actually in doesn't do exactly as you asked because for some reason the code I posted wasn't the code I wrote. I believe it if Contractor shall is found in the second
or subsequent sentence of a paragraph then you only want from that sentence on to the end of the paragraph highlighted.

It differed where Graham highlighted the sentence containing the found text where I highlighted the paragraph of the found text.

Sub Highlight_WordN()
    Dim oRng As Range
    Set oRng = ActiveDocument.Range
    With oRng.Find
        Do While .Execute(FindText:="Contractor Shall")
          oRng.Start = oRng.Sentences(1).Start
          oRng.End = oRng.Paragraphs(1).Range.End
          oRng.HighlightColorIndex = wdYellow
          oRng.Collapse 0
        Loop
    End With
lbl_Exit:
    Set oRng = Nothing
    Exit Sub
End Sub
Note: Word doesn't have a clear idea what a sentence is all about. Where the code above would highlight. Blah,blah. [John Smith the contractor shall blah. Blah blah]
it would process Blah, blah. Mr. [Smith the contractor shall blah. Blah, blah.

because Word confuses the period after Mr. as a sentence stop.

No (1) is not one paragraph to the right. It is the first paragraph in the ranges paragraph collection. So when the range is defined as a word or snippet in a paragraph the range.Paragraphs(1) is that ranges parent paragraph.

Collapse 0 is simple short for Collapse wdCollapseEnd where wdCollapseEnd is constant with the value = 0
You collapse the range so you don't get stuck in a loop finding the same thing over and over again.

lbl_Exit:
Exit Sub

Is just my style that my good friend Graham liked and adapted.
It doesn't serve much purpose other that to tell me that I have at least thought more than absently about what the code does and serves as an exit loop:

On Error GoTo lbl_Err
Err.Raise 6
lbl_Exit:
Exit Sub
lbl_Err:
Msgbox Err.Number & " " Err.Description
Resume lbl_Exit
End Sub