Lump-Sum Contracting
Advantages for project owners
The predictability of lump sum contracts is the primary benefit to project owners. The owner can expect the project to be completed within budget and often more quickly so that the contractor can maximize resources and save on labor costs. Lump sum contracts also render little financial risk for owners as the contractor is responsible for any cost overruns. These factors make it easier for project owners to obtain financing since lenders prefer to fund defined projects with clearly delineated costs.
However, lump sum contracts have specific criteria that can be both a benefit and a hindrance to a construction project.
Constructability and Budget Control
Our preconstruction experts drive best practices and lessons learned knowledge to maximize design and construction efficiencies, as well as continuous value engineering to deliver best value for lowest cost without compromising your design vision.
Cost fluctuations
The price of labor and materials can be fluid and subject to change throughout the project. Lump sum contracts generally do not account for these fluctuations, so contractors have to absorb the cost if prices rise. However, they can also realize savings if rates go down. These risks are arguably more pronounced in extended projects.
Contractors must factor in possible upward fluctuations and price the project accordingly when providing the estimate.
Provisional sums
As a national leader in our industry, Konstruktion is revolutionizing what you expect from a contractor.
To integrate the entire building lifecycle into a seamless platform to redefine how the world builds.
Passion. Integrity. Hard work. Professionalism. Caring.
Our clients
Meet our leadership
John Smith
Executive Vice President & General Counsel
“We favorably impact people, families and communities with our work, our projects and our charitable efforts. It’s an exciting place to be every day and our opportunities to contribute will grow as we continue to grow around the United States.”
Manuel Mitchell
Chief Financial Officer
“Wade believes the company’s shareholder program is a “gamechanger” in the construction industry. Konstruktion is 100% employee-owned, which means employees have the opportunity to invest in their own hard work.”
Jack Morton
Chief Financial Officer
“As owners, we are more accountable to you and more invested in your success. Across all levels of our organization, our experienced, innovative solution providers put our culture of ownership to work for you. When you succeed, we succeed.”
Building for the best.
Services
Providing exceptional construction services and insight from the start.
