What Is a Lump Sum Contract?
When it comes to paying money for work to be done, there are a number of options. One way of doing things is to pay for the costs associated with the job along with a fix fee for labor. This means that there can be uncertainty about the final cost until the work is complete. Another option is the lump sum contract. What happens here is that the individual who wants a project complete agrees to pay a specific lump sum of money upon completion of the work. Here the final cost is already decided and it is up to the contractor to get the job done within their budget.
