Lump Sum vs Measurement (BOQ) Contracts: Overview
High-level comparison of lump-sum pricing vs remeasurement contracts and what each implies for quantities.
Lump sum
Lump-sum contracts fix a price for a defined scope. Quantities may still be listed for reference but risk sits with the contractor unless variations apply.
Design clarity and complete drawings reduce dispute risk.
Where the employer changes scope, the contract defines how the lump sum is adjusted—often by agreed rates, fair valuation, or new lump sums for each instruction.
Measurement / BOQ-led
Remeasurement contracts adjust quantities against agreed rates when final quantities differ within rules—BOQ accuracy and method matter more.
Understand what happens when items are omitted or duplicated between drawings and BOQ.
Final measurement may use as-built records; keep site measurement books aligned with BOQ item boundaries.
Hybrid and design-build
Some forms use lump sum for defined work and provisional sums for evolving packages—track each stream separately in cash flow.
Design-build may start with performance budgets then firm into lump sums at design milestones; quantities still underpin internal cost control even if the client sees a single price.