A Lump Sum Contract is a fixed-price agreement in which the contractor performs a defined scope for a single agreed sum regardless of its actual cost, carrying the risk of overruns and the benefit of efficiencies. It suits well-defined data-center scopes and gives the owner price certainty, but changes to scope must be handled through variations, making complete, accurate design documents essential.
Category: Construction & Project Management · Subcategory: Contracts, Procurement & Commercial Control · Part of the AIDC Technical Terminology reference.