Construction · Defined
Contract sum
The agreed compensation for the contracted work, as adjusted under the governing agreement.
Why it matters
Distinguish the original amount from the current amount after approved changes. The contract sum is not necessarily the entire development budget. Reconcile the current amount to approved change records before comparing it with the payment application.
In practice
A project example
Approved additions increase the construction contract while owner-paid financing costs remain outside it.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.