Lump Sum
Lump sum (fixed price) contracting is a method where a single fixed total price is agreed for a defined scope of work before the work begins. CMAA guidance describes lump sum as a common fixed price method for a fixed scope in exchange for an agreed payment.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Contracting; construction
- Property types
- All
In practice
Lump sum maximizes price certainty but punishes incomplete documents; operator diligence must focus on scope clarity and exclusions.
Read more in the Knowledge Base
- Installment Sale StructuresSellers
- Move-Out Inspection and Security-Deposit Deduction ProtocolLandlords
- Tax Strategies for NYC Property Owners - 1031 Exchanges and Capital Gains PlanningBuyers
- Rent vs. Sell Decision Framework for New York Property OwnersLandlords
Related terms
Construction Terminology
- Change Order
- Construction Management at Risk (CMAR / CM@Risk)
- Design-Bid-Build
- Design-Build
- Guaranteed Maximum Price (GMP)
- Hard Costs
- Punch List
- Shop Drawings
- Soft Costs
- Submittals
General information, not legal, tax or financial advice.