A lump sum contract is an agreement to perform the desired project based on an established design and determined scope of work. The design phase is completed by the Architect and/or Engineer(s) and the Owner without the Contractors involvement. This type of contract reduces risk as exact costs for the work are established through a bid process before construction commences.

• Example project: Loeb Inc. [view image]
• Contract type: General Contract / Lump Sum Tender