Lump sum contract is identified by which code?

Lump sum contract is identified by which code?

• A. A102
• B. A201
• C. A701
• D. A101

Answer: (D)

A lump-sum contract uses a fixed price for the entire construction project based on a defined scope. The agreement that represents this fixed-price arrangement between the owner and the contractor is the Standard Form of Agreement Between Owner and Contractor for a Construction Project with a Stipulated Sum (A101). This form sets a single lump sum as the price, with the owner paying that amount regardless of the actual costs, subject to change orders for any scope changes. The other options don’t fit the lump-sum concept: A102 covers a contract where payment is based on the cost of the work plus a fee (cost-plus), A201 contains the general conditions for construction, and A701 covers instructions to the architect.

A lump-sum contract uses a fixed price for the entire construction project based on a defined scope. The agreement that represents this fixed-price arrangement between the owner and the contractor is the Standard Form of Agreement Between Owner and Contractor for a Construction Project with a Stipulated Sum (A101). This form sets a single lump sum as the price, with the owner paying that amount regardless of the actual costs, subject to change orders for any scope changes.

The other options don’t fit the lump-sum concept: A102 covers a contract where payment is based on the cost of the work plus a fee (cost-plus), A201 contains the general conditions for construction, and A701 covers instructions to the architect.