Which of the following best explains 'lump sum contract'?
A) Contract is based on a fixed price for executing the project.
B) A one off payment.
C) Payment by instalments.
D) Variable payments.

Question

Which of the following best explains 'lump sum contract'? 
A) Contract is based on a fixed price for executing the project. 
B) A one off payment. 
C) Payment by instalments. 
D) Variable payments.

Quizplus · Accepted Answer

A lump sum contract is a fixed-price contract where the total price is agreed upon before the start of the project, and the contractor is responsible for completing the project within the budgeted amount.

Which of the Following Best Explains 'Lump Sum Contract