A stipulated sum contract, also referred to as a lump sum contract, is a construction agreement in which the contractor agrees to complete all work on a residential project for a fixed, predetermined price. This type of contract offers assurance that costs will remain consistent throughout the duration of the project, as long as all scope and specifications are met by both parties. Such contracts may include specific provisions related to quality control, warranties, or other conditions set forth between the homeowner and contractor prior to beginning any work. Additionally, it helps establish clear lines of communication and accountability between both parties if there are any disagreements regarding expectations during or after the completion of the project.