Types of Construction Contracts 1. Lump Sum Contract In this contract, the contractor agrees to complete the project for a fixed total price. Suitable for projects with clearly defined scope. 2. Item Rate Contract Payment is made based on the actual quantity of work done at pre-agreed unitrates. Useful for projects with variable quantities. 3. Cost Plus Contract The contractor is paid for actual cost incurred plus a fixed percentage or fee. Usedwhen the scope is uncertain. 4. Time and Material C