Lump Sum Contract

A lump sum contract, also called a fixed-price contract, sets a single agreed price for a defined scope of work before construction begins. The contractor commits to completing the work for that amount regardless of what it actually costs.

It works best when the scope is well defined and the drawings are complete, so both sides can price with confidence. The contractor absorbs the risk of overruns — and keeps the benefit if the work comes in under.

Because the price is locked to a defined scope, an accurate takeoff and estimate up front is what protects the contractor's margin. Getting those quantities right before signing is exactly where Quotr helps.

For owners, a lump sum contract offers price certainty and simple administration. For contractors, it rewards accurate estimating and punishes the gaps.