AFTERDRAFT

What does stipulated sum mean in construction?

Short definition

A stipulated sum is a fixed contract price for a defined scope of work.

Longer explanation

It is often used when the contract documents are developed enough for the contractor to commit to a fixed price, subject to approved changes.

Example in context

The project team reviewed the stipulated sum during the construction phase.

Common users

  • Owners
  • Architects
  • Contractors
  • Construction managers

Related terms