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the ultimate guide to lump sum contract agreement because no two construction projects are alike there are several types of construction contracts lump sum contract cost plus contract etc available to meet the needs of all parties involved knowing which contract is ideal for the project helps owners contractors and suppliers manage risk and ensure that work and payment move as smoothly as possible what is a lump sum contract lump sum contract definition it is defined as a fixed price contract where contractors undertake to be responsible for executing the complete contract work for a stated total sum of money a long sum contract slash agreement will require the contractor to agree to provide specified works for a fixed price in this type of contract the client has essentially assigned all the risk to the contractor who in turn can be expected to ask for a higher markup in order to take care of unforeseen contingencies a contractor being contracted under a lump sum contract agreement t