Don’t Treat Your Lump Sum Contract Like Its Cost Plus

If you have a fixed sum agreement more than likely, the owner/developer is most concerned about your PROGRESSION and you’re being paid based on how much you’ve progressed on the job.

So one has to wonder why so many contractors treat lump sum agreements,  like cost-plus agreements and inaccurately itemize what they’ve “spent” on labor and materials? When contractors do this and its not accurate (which…most of the time its not), it calls their entire bid into question.

If the project goes over budget, they look like they PURPOSEFULLY under bid the project and along the way, misrepresented what they spent, all in an effort to get more money. This is almost certain to earn fraud lawsuit. Learn more by watching.

 

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