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[Music] first were going to talk about lump sum contracts real quick it is a simple type of contract basically lump sum contract is they put a price tag on the entire project they estimate everything and then they provide a usually a pretty detailed estimate but basically that number that lump sum is the main thing theyre providing everything else all the different bags of money within that can be shifted around as needed for them to try to get that project built for that lump sum so when the paying side accepts that amount of work or that amount its included in the contract it becomes the lump sum price for the work the working side benefits from a lump sum price because if they manage to keep the cost under control and below their estimate they get to keep the money that would have been otherwise spent on other costs so in a lump sum project if you are estimating a little fat in some areas and then you end up coming in under that price its all profit so the profit is typically b