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The traditional project delivery method for many construction projects is through a General Contracting approach which is typically 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 line-item trade / cost code for the full construction works. This sum is based on a fully developed set of construction drawings and specifications. As the main contractor, AZDC 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, it is imperative for the design 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 programming and design schedule allows for an adequate timeline for the architects, engineers, and other consultants to survey the site, investigate material selections, design, and coordinate the project plans and specifications. This affords the contractor and client the clarity of a fully coordinated set of drawings, reduces the project risks, minimizes budget creep, and increases cost certainty.