Which estimating method provides a fixed price for an entire construction project?

The lump sum method is the estimating approach that provides a fixed price for the entire construction project. This method involves determining the total cost of all elements of a project—such as labor, materials, equipment, and overhead—to arrive at a single price that encompasses everything. It is beneficial for both clients and contractors as it establishes a clear and agreed amount before the project begins, minimizing the risk of cost overruns for the client and ensuring the contractor knows the budget they must work within.

This method promotes efficient project management since it allows contractors to manage resources and expenses without the need for ongoing cost adjustments that are common with other methods. However, it also means that the contractor must accurately predict all costs involved in the project from the outset.

In contrast, the square foot method provides an estimate based on a cost per square foot, which can vary significantly based on many factors and does not yield a fixed price for the whole project. The unit price estimate involves breaking down the work into smaller units and pricing those individually, which does not provide a single fixed price but rather a rolling total as work progresses. A line item estimate consists of detailing each cost item, including labor and materials, but similarly does not lead to a single, unchanging total price for the project