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General Contracting

General Contracting

General Contracting approach

The traditional project delivery method for many construction projects is through a General Contracting approach which is executed through a Stipulated Sum Contract. This can also be known as a Lump Sum Contract.

The contract value is established as a Total or“Lump Sum” price, broken down by each trade for the full construction works.This sum is based on a fully developed set of construction drawings and specifications.As the main contractor, CJS then becomes responsible for all scope outlined in these construction documents.

While there is more initial cost certainty and a reduced initial financial risk for the client, the responsibility will fall onto the design to team to have a fully developed and coordinated set of bid documents, as any scope that falls outside of those documents is subject to becoming an extra cost to the Client. Extra costs typically come through via a Change Order to the base contract value.

This approach works best when the project design schedule allows for an adequate period of time for the architects,engineers and other consultants to survey the site, investigate material selections, fully design the project and then coordinate their drawings with each other. This way you then hand the main contractor a fully coordinated set of drawings and further reducing the project risks, whilst increasing cost certainty.

"Lump Sum Contracts give our clients more cost certainty for a specific scope of work. Many of our long standing clients prefer a lump sum General Contracting approach, when the project schedule allows for it." - Julie Sainovic. Project Manager

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If you have any additional questions or would like to discuss this further then please click the link below to contact us at CJS Builders.

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"As the client you will have full visibility into all companies who are bidding and how they have priced the works. If transparency and accountability is key to you then this is the suggested construction route that you should take for your project."
- Steve Trummer, Estimator.

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