Services

Lump-Sum Contracting

Clear Costs. Solid Commitments. Guaranteed Results.

At The Metropolitan Build, our Lump-Sum Contracting service is designed for clients who value cost certainty, streamlined communication, and a turnkey construction solution with minimal surprises.

Also known as fixed-price contracting, this delivery method allows owners to commit to a clearly defined scope of work at a pre-determined price, ensuring control over budget and expectations from day one.

What Is Lump-Sum Contracting?

Lump-sum contracting is a traditional project delivery method in which The Metropolitan Build provides a comprehensive price for the entire project — based on finalized plans, specifications, and schedules. This approach simplifies the contractual relationship: one contractor, one contract, one agreed-upon cost.

Ideal For:

  • Commercial, institutional, or residential projects with well-defined scopes

  • Clients seeking budget predictability and financial peace of mind

  • Developments requiring minimal owner involvement during construction

  • Projects that have completed pre-construction and design phases

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

Although lump sum contracts are pretty iron-clad as far as scope and cost, provisional or stipulated sums refer to the price of optional project work. The provisional sum is included as a separate estimate within the contract and only changes if the owner decides it’s a good idea to move forward with the elective work. The work associated with stipulated sums can cause issues with the project schedule, primarily if implemented later in the project. It can also lead to modifications that require formal change orders. That’s why it’s essential that the terms of a lump sum detail how to handle provisional sums and the limits of any related changes.
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