An official website of the United States Government
PGI 236.207 Pricing Fixed-Price Construction Contracts.
(a)(70) Definition: “lump sum” means a single payment of money, as opposed to a series of payments made over time.
(i) An example of a line item with lump sum pricing in accordance with DFARS 204.71 is as follows:
| ITEM NO. | SUPPLIES/SERVICE | QUANTITY | UNIT | UNIT PRICE | AMOUNT |
| 0001 | Repave runway 4 at Joint Base Andrews Firm Fixed Price PSC: Z1BD ACRN: AA | 1 | Job | $1,501,866.08 | $1,501,866.08 |
Note that payment would occur upon completion and acceptance of the entire effort. Progress payments based on estimates of the percentage of completion (see FAR 52.232-5—Payments Under Fixed-Price Construction Contracts) could occur prior to that point.
(ii) An example of a line item with unit pricing in accordance with DFARS 204.71 is as follows:
| ITEM NO. | SUPPLIES/SERVICE | QUANTITY | UNIT | UNIT PRICE | AMOUNT |
| 0001 | Repave runway 4 at Joint Base Andrews Firm Fixed Price PSC: Z1BD ACRN: AA | 525,128 | Square Foot | $2.86 | $1,501,866.08 |
Note that this allows the contractor to invoice for completed quantities of work, in accordance with FAR 32.102 (d), as those are accepted. Progress payments based on estimates of the percentage of completion (see FAR 52.232-5—Payments Under Fixed-Price Construction Contracts) could also occur prior to that point.
