The Real-life Aspects of Managing a Lump Sum Contract

Abstract

Why does one perform a lump-sum contract as opposed to a day-rate contract? Lumpsum contracts are remarkable for concentrating the attention of both client and contractor on the job in hand. Any variations mean money, and therefore the operation is better organized, more efficient for both parties, and, if well defined, is completed for a known fixed figure; although, because of the competitiveness of today’s market, this efficiency is often translated into reduction in bid price to the client.