First, some definitions. A cost-plus contract covers all costs associated with the project plus a contractor’s fee to cover overhead and profit. A lump-sum fixed contract is a single bottom line price clients can budget for. Croom works on both contract formats, but because our estimating is so detailed and accurate, we prefer lump-sum fixed contracts where we take the burden of risk on cost overruns. Beware of cost-plus contracts with less experienced contractors. They seldom have the expertise to stay within budget and schedule accurately.