Which code is associated with Lump Sum contracts?

Which code is associated with Lump Sum contracts?

• A. A102
• B. A201
• C. A101
• D. A305

Answer: (C)

Lump sum contracts are fixed-price agreements where the owner and contractor agree on a single price for the entire scope of work. The standard document used for this arrangement is A101, the Standard Form of Agreement Between Owner and Contractor for a Lump Sum. It establishes the total contract price based on a fully defined scope, so the contractor assumes the risk of cost overruns unless the scope changes. Any adjustments come through formal change orders that modify price and schedule. The other documents cover different payment structures or roles: for example, general conditions govern contract administration, and other agreement forms handle cost-plus or GMP-type arrangements, not fixed lump-sum pricing.

Lump sum contracts are fixed-price agreements where the owner and contractor agree on a single price for the entire scope of work. The standard document used for this arrangement is A101, the Standard Form of Agreement Between Owner and Contractor for a Lump Sum. It establishes the total contract price based on a fully defined scope, so the contractor assumes the risk of cost overruns unless the scope changes. Any adjustments come through formal change orders that modify price and schedule.

The other documents cover different payment structures or roles: for example, general conditions govern contract administration, and other agreement forms handle cost-plus or GMP-type arrangements, not fixed lump-sum pricing.