What does the Contract Sum represent?

The Contract Sum represents the total amount payable by the Owner to the Contractor for the completion of the project as defined in the construction contract. This amount is typically established through negotiations or bid submissions and encompasses all the services, work, and materials the Contractor will provide to deliver the project according to the contract documents.

This value plays a crucial role in establishing the financial framework of the project, providing clarity on what the Owner is obligated to pay the Contractor for their work. It reflects the agreed-upon price for the overall project and serves as an important reference point for budget management and financial planning throughout the construction process.

In contrast, the other options refer to different financial aspects but do not directly define the Contract Sum. The total estimated project budget would encompass additional costs and contingencies beyond the Contractor's fee. A breakdown of project costs gives detailed insight into various expenses but does not specify the total amount owed to the Contractor. The total amount for materials only focuses solely on procurement costs, neglecting labor, overhead, and other crucial components included in the Contract Sum.