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Contracts & Legalaka: contract priceaka: contract value

Contract Sum

In Plain English

The total agreed price the owner will pay the contractor to complete the project.

Definition

The contract sum is the total amount agreed upon in a construction contract that the owner will pay the contractor for completing the work. It may be a fixed lump sum, guaranteed maximum price, or a cost-plus arrangement. The contract sum is adjusted by approved change orders throughout the project.

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