Lump-Sum Contract
/ˈlʌmp sʌm ˈkɒntrækt/
Definitions
- (n.) A contract in which the contractor agrees to complete a project for a fixed total price irrespective of actual costs.
The builder signed a lump-sum contract to renovate the office building for $100,000.
Forms
- lump-sum contract
- lump-sum contracts
Related terms
See also
Commentary
Lump-sum contracts allocate the risk of cost overruns to the contractor, making precise scope definition critical during drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.