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Lump Sum Contract is a written agreement where the owner agrees to pay a contractor a specified amount, or “lump sum," for completing a scope of work without requiring a cost breakdown.

In this traditional delivery system, the owner engages a designer to prepare the design of the complete facility, including construction drawings, specifications and contract packages. Although usually not optimal for most complex or schedule-sensitive projects, this contracting system is common for some straightforward projects with well-established and clearly defined roles for the parties involved.

Lump Sum contracting is best suited for straightforward projects where owners can submit completed design documents prior to bidding. Keep in mind, this is not the fastest project delivery method and doesn’t offer much builder input in design.


  • Simple, traditional approach
  • Works well with a well-defined project scope
  • Suitable for small and/or straightforward projects

Cost-Plus Negotiated Fee
Under a cost-plus negotiated fee contract, we will bill you for our costs, including both direct and indirect costs, plus a fixed negotiated fee.


Cost-Plus Negotiated Fee: reimburses costs and pays the contractor a fee that is negotiated prior to signing the contract.
Fixed-Fee: the contractor includes the costs of materials and labor plus his contractor's fees in his bid. The contractor does not receive a separate cost reimbursement.
Cost-Plus Incentive Fee: a cost-reimbursement contract that encourages the contractor to bring in the project under budget.