Скачать или смотреть Lump Sum vs Cost Plus Contract

It’s a question which often comes up in discussions with architects and clients.

We always recommend clients to choose Lump Sum Contract as this is usually the banks’ preferred option.

Also, Lump Sum Contracts allow for flexibility whilst still providing a ‘fixed-price’ for the project.

Choosing Lump Sum Contract doesn’t mean that you’re locked into certain scope of works items.

Prime Cost (PC) Items which form part of the Lump Sum Contract exists for the reason of offering flexibility for cost adjustments when a final decision a made.

Additionally, there is always the option for including ‘Allowances’ as part of your Lump Sum Contract for budgeting purposes.

The only time we’d recommend using a Cost Plus Contract would be instances whereby there is an established level of trust between all parties involved and that all parties are quite knowledgeable about the construction process.