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And when money is involved, a contract is essential! Generally you'll come across one of three types of contract on a project: fixed price, cost-reimbursable (also called costs-plus) or time and materials.

A lump sum contract, sometimes called stipulated sum, is the most basic form of agreement between a contractor and a customer. A lump sum contract or a stipulated sum contract will require that the contractor agree to provide specified services for a stipulated or fixed price.

A lump-sum payment is an often large sum that is paid in one single payment instead of broken up into installments.They are sometimes associated with pension plans and other retirement vehicles, such as 401k accounts, where retirees accept a smaller upfront lump-sum payment rather than a larger sum paid out over time.

Contract Types Overview. Express and Implied Contracts. Unilateral and Bilateral Contracts. Unconscionable Contracts. Adhesion Contracts. Aleatory Contracts. Option Contracts. Fixed Price Contracts.

A lump-sum contract is normally used in the construction industry to reduce design and contract administration costs. It is called a lump-sum because the contractor is required to submit a total and global price instead of bidding on individual items.

Massachusetts Lump Sum Agreement for Workers' Compensation

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What are 3 types of contracts?

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