Definition : Lump sum contract

Contract by which a contractor or a service provider undertakes to provide a work or a service, for a price fixed in advance and invariably, for all the works or for all the services defined therein. The risks of price increases or decreases due to the circumstances encountered are thus reduced.

Related articles

To maintain the common portions of the co-ownership and ensure the preservation of the immovable, it is necessary for the syndicate to subscribe to a certain number of maintenance or construction contracts. As the representative of the syndicate of co-owners, it is the board of directors that generally has the power to subscribe to all the contracts of the co-ownership. To manage costs and determine the obligations of each, it is essential for directors to distinguish the main types of contracts. This fact sheet provides an update on the most common contracts in this area, namely the lump sum contract, the cost-plus contract and the flat-rate unit price contract.
View more