A traditional method for delivering many construction projects is through a General Contracting approach, executed via a fixed-price contract, also known as a lump sum contract.
In this approach, the contract value is established as a fixed “Lump Sum” price, which is broken down by each trade for the entire construction project. This amount is based on a fully developed set of construction drawings and specifications. As the main contractor, NoConP takes responsibility for the entire scope outlined in these construction documents.
With this approach, the client gains more cost certainty and reduced financial risk in the early stages of the project. However, it is the design team’s responsibility to create a well-developed and coordinated set of bid documents. If any work arises that is not included in these documents, it may result in additional costs for the client. These extra costs typically come through a Change Order to the base contract value.
This approach works best when the project design schedule allows sufficient time for architects, engineers, and other consultants to survey the site, select materials, fully design the project, and coordinate their drawings with each other. This way, the main contractor receives a fully coordinated set of drawings, which reduces project risks and increases cost certainty.
In addition to the lump sum contract, progress payments can also be applied for each completed stage of the project. This means payment is made for the work that has been completed and approved by the client, typically after each specific phase is finished. Progress payments offer both the client and the contractor greater flexibility and allow for a smoother distribution of costs over time.
Behind the word mountains, far from the countries Vokalia and Consonantia, there
©2025. NOCONP. All Rights Reserved.