Last edited 17 Aug 2018

Lump sum contract - pros and cons

A lump sum contract is the traditional means of procuring construction, and involves a single ‘lump sumprice for all the works being agreed before the works begin.

It is generally considered a beneficial contract agreement if the work 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.

The advantages of a lump sum contract include:

Disadvantages include:

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