Commentary

69 Principles of calculation

BUILDING AND ENGINEERING vol 5
| Commentary

69 Principles of calculation

| Commentary

2: AMOUNT OF PAYMENT

69 Principles of calculation

Construction contracts are often categorised by reference to their payment terms. A description of the major categories follows, though it should be borne in mind that most contracts are hybrids, in the sense that not all payments under them are made on the same basis.

  1. 69.1

        A ‘lump sum’ contract is one under which the contractor undertakes to carry out the complete work in return for a single sum of money1. In so far as there is a breakdown of rates and prices for different aspects of the work, this will be of

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