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he ultimate guide to lump sum contract agreements is essential for managing risk and ensuring smooth work and payment processes in construction projects. A lump sum contract is a fixed price agreement where contractors take on responsibility for completing all work for a set total cost. This type of contract shifts all risk to the contractor, who may charge a higher markup to cover unforeseen contingencies. Understanding the different types of construction contracts available, such as lump sum and cost-plus contracts, helps owners, contractors, and suppliers choose the most suitable contract for their project.