Lump Sum Contracts

The Lump sum contract is a fixed price contract and the purpose is to reduce the costs of design and contract administration where the contractor offers to do the whole work as shown in drawings and specification for a total agreed sum of money. This contracting technique requires the Contractor to submit a lump sum single price to complete the total project. Contractors will be provided with a set of bid documents including plans, specifications to ensure fairness and to maintain same work estimation. Agreed lump sum amount will be paid to the contractor at the end of the project completion. In large projects, part payments will be made to the contractor at different stages of the project on mutually agreed terms.