Lump Sum and Unit Sample Clauses

The "Lump Sum and Unit" clause defines how payments are structured in a contract, specifying whether compensation is based on a fixed total amount (lump sum) or on measured quantities of work (unit rates). In practice, a lump sum arrangement means the contractor is paid a predetermined amount for completing the entire project, regardless of actual costs, while a unit rate approach pays the contractor based on the actual quantities of work performed, such as per cubic meter of concrete poured. This clause clarifies the payment method, helping both parties understand their financial obligations and manage cost risks throughout the project.