Which description best defines the fixed-price delivery method?

• A. Stipulated sum / lump sum method, in which the contractor gives the owner a set price for completing the project.
• B. Cost-Plus Fee w/ Guaranteed maximum price (GMP) where the owner pays actual costs plus a pre-established fee and the CM guarantees a max price.
• C. Fast Tracking, where construction can begin before the design phases are completed and A/E documents are issued in stages.
• D. Construction Manager as Constructor (CMc) involves a single agreement with the owner and two phases: pre-construction and construction.

Answer: (A)

The fixed-price delivery method is defined by an agreed single price for completing the project based on a well-defined scope. In this approach, the contractor provides a lump-sum amount that covers all work required to deliver the project as specified, so the owner knows the total cost up front. The contractor bears the risk of cost overruns, and any changes to the scope are handled through formal change orders that adjust the price and possibly the schedule.

This is best described by the stipulated sum or lump-sum concept because it centers on locking in a specific price for a clearly defined set of work. The other options describe different procurement or sequencing ideas: cost-plus with a maximum price involves reimbursing actual costs plus a fee up to a cap, not a fixed price; fast tracking is about starting construction before design is finished, not about price stability; and construction management as constructor involves a two-phase arrangement with a CM in a guiding role, not a simple fixed-price contract.