Multiple Prime Lump Sum Contract

Definition

A project delivery system where the construction manager acts as an agent to the Owner. Each trade contractor has a direct contractual relationship with the Owner through a lump sum contract. Typically, this is an AIA 132 CMa contract.

Purpose

The Multiple Prime Lump Sum Contract allows the owner to contract directly with multiple trade contractors for different portions of the work, with the construction manager coordinating the overall project. This approach can provide greater control over costs and schedules and allows for more specialized trade expertise.

Examples of Use

• Large commercial projects: Using multiple prime contracts for complex commercial developments with various specialized trades.
• Institutional buildings: Implementing this contract method for schools, hospitals, and government buildings to manage diverse construction needs.
• Industrial facilities: Applying multiple prime contracts for constructing or renovating factories and industrial plants.

Related Terms

• Construction Manager as Advisor (CMa): A project delivery method where the construction manager acts as an advisor to the owner, coordinating multiple trade contracts.
• Lump Sum Contract: A contract where the contractor agrees to complete the work for a fixed price.
• Trade Contractor: A contractor specializing in a specific aspect of construction, such as plumbing, electrical, or HVAC.

Notes

• The owner benefits from direct control over trade contracts but must manage multiple contracts and coordinate with the construction manager.
• Clear communication and detailed documentation are crucial to ensure all parties understand their responsibilities and the project scope.
• This approach can lead to cost savings and better quality control but requires careful planning and management.