Guild of Project Controls: Compendium | Roles | Assessment | Certifications | Membership

Tips on using this forum..

(1) Explain your problem, don't simply post "This isn't working". What were you doing when you faced the problem? What have you tried to resolve - did you look for a solution using "Search" ? Has it happened just once or several times?

(2) It's also good to get feedback when a solution is found, return to the original post to explain how it was resolved so that more people can also use the results.

Firm Lump Sum

3 replies [Last post]
Fri, 2006-11-10 12:29
Tommy king
User offline. Last seen 17 years 24 weeks ago. Offline
Joined: 9 Nov 2006
Posts: 9
Groups: None
hi member,

Can anyone explain what does this mean ??

" The Contract Price shall be a firm Lump Sum save for the Provisional Sums "


Cheers
Top

Replies

Mon, 2006-11-20 17:49
#1
Skan Bu
User offline. Last seen 13 years 29 weeks ago. Offline
Joined: 29 May 2006
Posts: 118
Groups: None
Hi,

" The contract shall be Firm Lump Sum,save for the provisional sum"

My interpretation is:
(1) Firm price: therefore not subject to adjustment for any duration of the project.
(2) Lump Sum means: it is a type of contractual relation where the price is Lump Sum and unless there is an instruction from the Architect to add/omit, the Lump Sum price will not change. The Provisional Sum expenditure must also be instructed otherwise whatever is enterred in the Provisional Sum stay.

This type of contract is not remeasurable, therefore no changes to the contract sum unless AI but... if an AI issue construction drawings which have changes from the tender drawings, is it an automatic signal to measure the changes and use the AI as part of Add/Omit to alter the Contract Sum?

Firm price only apply to the original Contract Sum? If there are changes and the additional items do not have rates in the BoQ, can the new rates be of present pricing and not using prorata in the BOQ rates?

Is my interpretation hold?


Top
Mon, 2006-11-20 13:26
#2
X Planner
User offline. Last seen 8 years 11 weeks ago. Offline
Joined: 17 Jun 2002
Posts: 78
Groups: None
Lump sum is type of contracts that puts almost all the risk on the contractor’ shoulder and it is as less risk on the client, it means that there is no remeasuring for the quantities along the project duration, as i understand

Regards,
Top
Sat, 2006-11-11 03:14
#3
Ahmed Farouk
User offline. Last seen 11 years 50 weeks ago. Offline
Joined: 7 Mar 2006
Posts: 6
Groups: None
Lump Sum Means a job inclusive of several activities that should be done and its cost shall be due upon the completion of all activities where such activities shall not be subject to remeasuring. Thus, I beleive that the term means the contract price is a fixed price not subject to reamusring rules or unit rates except for the provisional sum amounts
Top