Common use of Agreement Sum Clause in Contracts

Agreement Sum. The Agreement Sum is stated in Appendix B (Agreement Sum and Payment Schedule) and is the total amount payable by the Owner to the Contractor for the performance of the Work under this Agreement. The Agreement Sum is fixed. Any work additional to the Work shall be done on a fixed price basis or on a time and materials basis as agreed to by the Owner and Contractor prior to the commencement of such additional work. Before submitting the first invoice, the Contractor shall submit a complete breakdown of the Agreement Sum showing the value assigned to each part of the Work including an allowance for profit and overhead. Upon Owner’s approval of the breakdown of the Agreement Sum, it shall be used only as a basis for the Contractor's invoice. For lump-sum agreements the Contractor is to provide invoicing showing material costs and the total cost of the project or applicable portion thereof.