Choosing the Right Project Management Contract Can Save You Millions

he type of project management contract you choose determines everything—risk, budget control, and how smoothly your project runs. Here’s a quick breakdown of the key types: Lump Sum Contracts – Fixed price, great for projects with clear scope but risky if changes occur. Cost-Plus Contracts – Transparent pricing but requires strong cost controls. Time & Material Contracts – Flexible but needs careful monitoring to avoid cost overruns. Unit Price Contracts – Good for projects with repetitive work but needs precise estimation. Each contract type impacts your project differently. Choose wrong, and you risk cost escalation, delays, or disputes. Choose right, and you ensure smooth execution with financial control. Not sure which contract suits your project? Understanding the risks now can save you millions later.