Lump Sum Contract
Definition
A lump sum contract (also called a fixed price contract) is one where the contractor agrees to complete a defined scope of work for a fixed sum of money. Unless agreed variations are instructed, the contractor bears the risk of any cost overruns resulting from their own errors or underestimation.
In construction tendering, this means...
Lump sum contracts are the most common form of contract for commercial building projects in the UK. They give clients certainty of cost, but only if the scope is clearly and completely defined at tender. Ambiguous or incomplete scope at tender stage in a lump sum contract is a reliable recipe for disputes and unwanted variations.
Takshy automates the parts of the tendering process that involve lump sum contract, extracting scope, managing documents, and keeping your workflow organised from first document to final award.
Automate your tendering with Takshy
Understanding the terminology is step one. Takshy handles the rest, from extracting scope from project documents to sending structured RFQs and managing the returns.
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