An item-rate contract pays agreed rates for measured work and suits evolving scopes or work inside running plants. A turnkey (lump-sum) contract delivers a defined scope for an agreed price with one point of responsibility, and suits clear drawings and fixed deadlines. Under either model, measured daily progress reporting protects the client.
Item-rate contracts
You pay agreed rates for measured quantities of work. This is flexible when the scope is still changing, but you carry more of the coordination and quantity risk.
Turnkey (lump-sum) contracts
One contractor delivers a defined scope for an agreed price. You get one point of responsibility and a clearer budget, but the scope must be well defined up front.
Which suits you?
- Scope still evolving, or work inside a running plant: item-rate often fits better
- Clear drawings and a fixed deadline: turnkey often fits better
- Many trades involved: one responsible contractor, under either model, reduces gaps
Either way, insist on reporting
Under both models, measured daily progress reporting protects you: it shows what was done, supports billing and flags delays early.