Commercial control

Contract Sum

The amount stated in the building contract as payable for the agreed work, subject to the contract's adjustment rules.

Alphabetised construction reference cards beside a drawing and scale ruler
Construction glossaryCategory: Commercial control.
Definition

The amount stated in the building contract as payable for the agreed work, subject to the contract's adjustment rules.

Why it matters

It becomes the commercial baseline for valuations, variations and the final account.

Example in practice

The signed contract records the accepted tender total as the contract sum before later adjustments.

Use the term carefully

State the scope, amount, adjustment method or contract meaning whenever this term could change who carries cost or risk.