LUMP SUM CONTRACT Sample Clauses
A Lump Sum Contract is a type of agreement where the contractor agrees to complete a specified scope of work for a fixed, predetermined price. Under this arrangement, the contractor assumes the risk of cost overruns, as any additional expenses beyond the agreed amount are typically not reimbursed by the client. This contract type is commonly used in construction projects where the scope and specifications are clearly defined in advance. Its core practical function is to provide cost certainty for the client and simplify payment processes, thereby minimizing disputes over project costs.
POPULAR SAMPLE Copied 18 times
LUMP SUM CONTRACT. The Contract is a lump sum fixed price contract. The items and quantities allowed in the Contract or those quoted by the Contractor are for reference only. Unless it is expressly stipulated by HKUST in the Contract that the quantities of any items are provisional and will be remeasured on completion of the Works, the contract sum shall not be subject to change if the final quantities installed or provided are different from the quantities therein.
LUMP SUM CONTRACT. This subclause 2A.3 only applies where Item 10A states that the Contract is a lump sum contract. The Principal shall pay the Contractor the sum of the lump sums stated in the price schedule, adjusted by any additions or deductions made pursuant to the Contract. Where, otherwise than by reason of a direction to vary WUC, the actual quantity of an item required to perform the Contract is greater or less than the quantity shown in the price schedule the Contractor shall carry out that greater or lesser quantity as if it were originally stated in the Contract and there shall be no adjustment to the contract sum. The price schedule may be used by the Superintendent as a guide in the assessment of progress claims, variations and other adjustments to the contract sum permitted by the Contract, but for no other purpose.'
LUMP SUM CONTRACT. In the event of conflict between the County’s Contract Terms and Conditions and Specifications and 2007 VDOT Road & Bridge Specifications, the County’s Terms and Conditions and Specifications shall prevail, unless Contractor is directed otherwise by the County.
LUMP SUM CONTRACT. If this is a Unit Price Contract, the unit prices are set forth in the Scope of Work. Contractor is not authorized to undertake any efforts or incur any costs whatsoever under the terms of this agreement until receipt of a fully executed Purchase Order from the Finance Department of the City of Saratoga and a notice to proceed from the Administrator.
LUMP SUM CONTRACT. This type of contract is used mainly for assignments in which the scope and the duration of the Services and the required output of the Consultant are clearly defined. Payments are linked to outputs (deliverables) such as draft or final reports, drawings, bill of quantities, bidding documents, or software programs. Lump-sum contracts are easier to administer because they operate on the principle of a fixed price for a fixed scope, and payments are due on clearly specified out puts and milestones. Never the less, quality control of the Consultant's outputs by the Procuring Entity s paramount.
LUMP SUM CONTRACT. For this type of contract, tenders are required to quote a fixed sum for execution of the complete work according to the drawings, designs, and specifications supplied to them with the tender within the specified time. Payment of items of work involved for any additions and alterations not covered by the original work is done according to the departmental schedule of rates.
(i) Cost of the work becomes known beforehand and as such owner gets sufficient time to arrange for the required finance.
(ii) Except in respect of additions and alterations detailed measurements of the work done is not required to be recorded.
(iii) Since total cost of the work and work to be done are known beforehand better planning and management for execution of work is possible.
(i) In this contract the work to be done has to be accurately and completely shown on the drawing and described in the specifications. In absence of any information in this respect disputes are likely to crop up.
(ii) It is not suitable form of contract as considerable additions or variations are expected in the works.
(iii) Difficulty arises in making intermediate payment. However this can be done on the certificate given by responsible officer to the effect that the value of the work done is not less than the amount asked for in conformity with contract agreement.
LUMP SUM CONTRACT. 32.1. If a Lump-Sum contract form is included in the RFP, the Bidder is deemed to have included all prices in the Financial Proposal, so neither arithmetical corrections nor price adjustments shall be made. The total price, net of taxes understood as per Clause 33 below, specified in the Financial Proposal (Section 5A) shall be considered as the offered price. 33. Taxes 33.
LUMP SUM CONTRACT. The Subconsultant is being hired to perform professional services in connection with the Project as set forth herein. In consideration for the services performed, the Consultant shall pay to the subconsultant the Fee as provided herein. The Fee includes compensation for any cost to be incurred by the subconsultant, and the subconsultant shall not be reimbursed for costs incurred outside of the agreed-u[on Fee. The subconsultant shall bear the costs, and resulting risks, of performing this Agreement. The subconsultant may only be paid for work actually performed.
LUMP SUM CONTRACT. A lump sum contract refers to a construction project construction contract where the parties to the contract agree to calculate, adjust and confirm the contract price based on the construction drawings, priced bill of quantities or budget documents and relevant conditions. Within the agreed scope, the total contract price shall not be adjusted. The parties to the contract shall stipulate in the special contract terms the scope of risks included in the lump sum and the calculation method of risk expenses, and agree on the adjustment method of the contract price beyond the scope of risks. Among them, the adjustment caused by market price fluctuations shall be implemented in accordance with Clause 11.1 (Adjustments Caused by Market Price Fluctuations), and the adjustment caused by legal changes shall be implemented in accordance with Clause 11.2 (Adjustments Caused by Legal Changes).
LUMP SUM CONTRACT. With this kind of contract the engineer and/or contractor agrees to do the a described and specified project for a fixed price. Also named "Fixed Fee Contract". Often used in engineering contracts. •A Fixed Fee or Lump Sum Contract is suitable if the scope and schedule of the project are sufficiently defined to allow the consulting engineer to estimate project costs •Payment may be staged at intervals on the completion •The contract has a very limited flexibility for design changes. •The tendered price may include high level of financing and high risk contingency. • Where considerable risk has been places with the contractor, this contract may lead to cost cutting, trivia claims, or bankruptcy. •Contract final price is known at tender. •An important risk t the client is that of not receiving competitive bids from desirable contractors who may avoid a high-risk lump-sum contract. •This contract may be used for a turnkey construction. •It is appropriate when work is –defined in detail, –limited variations are expected, –level of risk is low and quantifiable, and –client does not wish to be involved in the management of his project.