Register now or log in to join your professional community.
would be a term used to describe a cost as all inclusive.
it is 1 type of approx amount of quantity that amount we called lump sum amount
its a contractual term more which means that the contract has a total price only with no detailed items all the items are considered only one item which is the contract, as a contractor you deal with high level of details of quantity surveying and cost estimation to acquire a final price for the contract.
It is one type of Contract or mode of payment where a second party (Contractor) is reimbursed for an all-inclusive cost for providing goods and services in completing the Work described in Contract or a particular item of work in BOQ.
Lump Sum, for a Quantity Surveyor, would be a term used to describe a cost as all inclusive. This means that if you have a preliminary cost in the contract of say $80k against plant and machinery hire, and it states 'lump sum' then this is an all inclusive number which may include other overheads and costs unknown to you. What this means in practicality is that if the original contract was for 40 weeks, and they were entitled to a 1 week extension of time, then you cannot simply take the $80k divided by the 40 weeks to find the value of 1 week prolongation cost.
Hopefully this was helpful.
Cheers
An amount of money that is paid in one large payment on one occasion for example your estimated cost is859.63 so you can Lump Sum =860
Lump sum means, all cost are included or fixed amount.
