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What is a contract sum adjustment?

The contract sum is the price agreed with the contractor and entered into the contract. The agreed contract sum should be calculated and checked very carefully as errors are deemed to have been accepted by both parties. As a result, contracts generally allow for the contract sum to be adjusted, for example: Variations.

What is a contract sum analysis?

A Contract Sum Analysis (CSA) is an alternative pricing document to a Schedule of Works (SoW) / Bill of Quantities (BoQ). The Contract Sum Analysis is prepared following a review of the Employers Requirements. Subject to any negotiations, it may or may not be amended prior to execution of the Contract Documents.

What is a contract sum?

The contract sum is the price agreed with the contractor and entered into the contract. The agreed contract sum should be calculated and checked very carefully as errors are deemed to have been accepted by both parties. As a result, contracts generally allow for the contract sum to be adjusted, for example: Variations.

How does lump sum contract work?

A lump sum contract (or stipulated sum contract) is the traditional means of procuring construction, and still the most common form of construction contract. Under a lump sum contract, a single 'lump sum' price for all the works is agreed before the works begin.

What is a pricing document?

Tender pricing document. The tender pricing document sets out the way in which the design team and client wish to review the breakdown of the overall tender prices provided by tendering contractors. It is effectively an unpriced bill of quantities. Form the financial basis of the tender report.

What is a CSA in construction?

CSA stands for Civil/Structural/Architectural (engineering and construction)

What is the difference between fixed price and lump sum contract?

Lump sum (or stipulated sum) contracts are sometimes referred to as 'fixed price' contracts, although strictly this is not correct. On a lump sum contract, a single 'lump sum' price is agreed before the works begin.

What is a lump sum fixed price contract?

Under a lump sum contract, a single 'lump sum' price for all the works is agreed before the works begin. It is defined in the CIOB Code of Estimating Practice as, 'a fixed price contract where contractors undertake to be responsible for executing the complete contract work for a stated total sum of money.

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