- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 19 Dec 2017
Difference between lump sum and measurement contracts
Under a lump sum contract, a single ‘lump sum’ price for all the works is agreed before the works begin. It is defined as a fixed price contract, where the contractors agree to execute the work for a stated total sum of money. Lump sum contracts are generally appropriate where the project is well defined when tenders are sought and significant changes to requirements are unlikely. This means that the contractor is able to accurately price the works they are being asked to carry out.
For more information see: Lump sum contract.
Measurement contracts (sometimes called ‘re-measurement’ or ‘measure and value’ contracts) are generally used in situations where the design (or type of works) can be described in reasonable detail, but the amount cannot. For example, excavation works where the quantity of excavation required is difficult to assess until after the works have begun. The contract sum for measurement contracts is not finalised until the project is complete. At this point it is assessed on based on re-measurement of the actual amount of work carried out.
For more information see: Measurement contract.
 Related articles on Designing Buildings Wiki
Featured articles and news
The complex situation where events occur at the same time.
How can Latin America and the Caribbean unlock the digital potential of their new and existing built environment?
CIOB publish a new code of estimating practice.
These relate to a programme where each activity is allocated a price and interim payments made against completion.
Police testing finds that flat door could only withstand fire for half its designed time.
Have a look at these images from a new photography book of buildings being reclaimed by nature.
What does the phrase 'demised premises' mean? Find out here in our introductory article.
New good practice guidance looks at the best way to deliver multi-functional solar car parks.
Philip Hammond suggests the public finances have reached a turning point.
The fifth annual ICE-Topcon lecture looked at how to balance smart technology and security.
Support grows for the Construction (Retention Deposit Schemes) Bill.