Definitions for lump sum contract
lump sum con·tract

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1. Lump sum contract

   Lump sum contract in construction is one of the construction contracts, which is sometimes referred to as stipulated-sum, a single price is quoted for the entire project based on plans and specifications and covers the entire project and the owner knows exactly how much the work will cost in advance. This type of contract requires a full and complete set of plans and specifications and includes all the indirect costs plus the profit and the contractor will receive progress payments each month minus retention. The flexibility of this contract is very minimal and changes in design or deviation from the original plans would require a change order paid by the owner. In this contract the payment is made according to the percentage of work completed. The lump sum contract is different from guaranteed maximum price in a sense that the contractor is responsible for additional costs beyond the agreed price, however, if the final price is less that the agreed price then the contractor will gain and benefit from the savings.There are some factors that make for a successful execution of a lump sum contract on a project such as experience and confidence, management skills, communication skills, having a clear work plan, proper list of deliverables, contingency, and dividing the responsibility among the project team. According to Associated General Contractors of America (AGC), “In a lump sum contract, the owner has essentially assigned all the risk to the contractor, who in turn can be expected to ask for a higher markup in order to take care of unforeseen contingencies. A Contractor under a lump sum agreement will be responsible for the proper job execution and will provide its own means and methods to complete the work.” In lump sum Contracts or fixed-price contracts, the contractor is evaluating the value of work as per the documents available. Mainly these documents can be specifications and the drawings. In pre-tender stage Contractor evaluates the cost to execute the project (based on the above documents such as drawings, specifications, schedules, tender instruction and the clarification received for the raised queries). And the contrast to these documents Contractor is evaluating and agreeing with the owner (or employer) to complete the works without exceeding the agreed lump sum amount.

How to pronounce lump sum contract?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say lump sum contract in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of lump sum contract in Chaldean Numerology is: 9

2. Pythagorean Numerology

   The numerical value of lump sum contract in Pythagorean Numerology is: 2

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Lump_Sum_Contract