Definitions for "Lump-sum contract"
a contract through which the price is billed as one lump-sum amount
A type of construction contract requiring the general contractor to complete a building or project for a fixed cost normally established by competitive bidding. The contractor absorbs any loss or retains any profit.
A contract method usually arrived at through a competitive bidding approach submitted by a contractor, based on a fixed set of contract documents. The contractor assumes total risk for losses due to bid oversight and retains any additional profit where savings are achieved.