Difference between Lump Sum & Schedule of Bid Item

Question 1

Define Lump Sum

Answer 1

Not balanced

All indirect cost are calculated by its own horizontal category

Fixed price where contractors agrees to complete the project for a predetermined, set price.

Total Bid is presented to the owner

Question 2

Define Schedule Bid Item

Answer 2

Direct Costs are tabulated. (Listed systematically)

Indirect costs are calculated separated and distributed into direct cost by the contractor’s choice of % labor / % total cost.

Total Bid for each bid item is presented to the owner