Lump-Sum Price in Public Procurement Law 2026

Lump-sum price in procurement law: fixed total price for a defined overall service – risk allocation, distinction from unit prices and contract design.

Definition: The lump-sum price is a fixed total price agreed in a procurement or construction contract for a fully specified service. The contractor must deliver the service at this price regardless of the actual effort or quantities, provided that the specification contains no material gaps.

Last updated: January 2026 · Legal basis: ÖNORM B 2110 sec. 5.2, VOB/B § 4, BGB § 631 et seq., BVergG 2018

Concept and economic significance

The lump-sum price is the most common contract form for construction works and complex service contracts in public procurement, as it provides the contracting authority with cost certainty and predictability. In contrast to a unit-price contract, where total remuneration depends on the quantities actually delivered, with a lump-sum contract the total price is fixed from the outset. The contractor thereby bears the quantity and calculation risk.

Types of lump-sum price

Global lump sum (detailed lump sum)

Under a global lump sum, the contractor undertakes to deliver a fully specified service at a fixed total price. The specification is detailed; deviations in actual quantities generally do not change the lump-sum price. The contractor bears the quantity risk in full.

Functional lump sum

Under a functional lump sum, the service is described functionally; the contractor owes the result, not a particular method of execution. The planning risk rests with the contractor. This contract type is common in turnkey awards.

Risk allocation in lump-sum contracts

The allocation of economic risk is one of the central questions in lump-sum contracts, particularly where actual quantities deviate significantly from those calculated.

In Austria, ÖNORM B 2110 provides for adjustment rules if the actual quantities exceed or fall short of the lump-sum mass by more than 10 % (lump-sum threshold). In Germany, under VOB/B § 2 para. 7, the lump-sum price is in principle unchangeable unless service modifications or additional services are ordered.

Procurement law requirements

Increased requirements regarding the completeness of the specification apply when tendering lump-sum services. An incomplete specification can lead to:

Bidders being unable to calculate on a comparable basis, complicating bid evaluation.
Supplemental claims arising that erase the economic advantage of the lump-sum price.
The procurement procedure becoming vulnerable to challenge on the grounds of incomplete documents.

Contracting authorities are therefore well advised to complete comprehensive preliminary and concept planning before tendering a lump-sum contract.

Distinction unit price vs. lump-sum price

Feature	Unit-price contract	Lump-sum contract
Total remuneration	Quantity-dependent	Fixed
Quantity risk	Contracting authority	Contractor
Suitable for	Easily plannable services	Complex, hard-to-quantify services
Supplemental claim risk	Low (quantity changes)	High (incomplete specification)

Related terms

FAQ

Can the lump-sum price be increased retroactively? In principle, no. Exceptions apply for ordered service modifications, material planning changes or where the contracting authority's specification was demonstrably incomplete.

What happens if actual quantities fall significantly short of the lump-sum estimate? In Austria, contractual adjustments may be provided for where the threshold is undershot by more than 10 %. In Germany, the lump-sum price is in principle unchangeable unless expressly agreed otherwise.

Is a lump-sum contract suitable for all types of contracts? No. For services with unpredictable quantities or for early awards without completed planning, a unit-price contract is often more appropriate.

Last updated: January 2026 All information without guarantee. For legally binding advice, please consult a law firm specialising in public procurement law.