In most Design-Bid-Build projects, how is the lump sum paid to the contractor?

In most Design-Bid-Build projects, the lump sum payment to the contractor is typically made through periodic payments, usually on a monthly basis. This method of payment allows for a structured approach where the contractor receives payments at regular intervals as specific work progresses. It helps manage cash flow for both the contractor and the project owner, ensuring that the contractor is compensated for work completed to date.

Paying in periodic installments also encourages ongoing communication and accountability throughout the project, as it requires the contractor to submit detailed invoices that align with the project's progress. This approach mitigates financial risk for the project owner because payments are directly tied to the completion of tangible work, providing assurance that funds are being utilized effectively as the project evolves.