Stipulated Sum Contracts

• The Stipulated Sum contract (commonly referred to as a Lump Sum), is an agreement for a contractor to provide the labor and install building materials according to the drawings and specifications for a fixed price.
  
  

Guaranteed Maximum Price Contract

• GMP contracts are used on fast track projects or when the design is incomplete at the time construction starts. The contractor provides the owner a fixed price to manage the construction, a fixed percentage for overhead and profit, and an overall bid for the project that cannot be exceeded. The contractor is responsible for any cost overruns.
  
  

Cost Plus a Fee Contract

• Under this form of contract the contractor provides a fixed percentage for overhead and profit and charges the owner for the actual cost of the materials, labor and equipment used to undertake the work. Cost Plus a Fee contracts have less defined project information so the owner incurs all of the cost risk.
  
  

Design and Build Contract

• The distinguishing feature of a design-build contract is that the contractor is responsible for both the design and construction of the project.
  
  

Construction Manager at Risk Contract

• Under a Construction Manager at Risk Contract, a construction manager is engaged by the owner and paid a fee to work on the project through design and construction. The CM manages cost and schedule, can engage contracts for work with subcontractors on behalf of the owner and is responsible for completing the building project.