What does contract sum mean in construction?
Short definition
The contract sum is the agreed amount payable for the work under the contract, as adjusted by approved changes.
Longer explanation
Project teams track the contract sum through change orders, allowances, alternates, pay applications, retainage, and final payment.
Example in context
“The project team reviewed the contract sum during the construction phase.”
Common users
- Owners
- Architects
- Contractors
- Construction managers