Driveway Lump Sum Contract: The Simplest Way to Budget Your Project
A Driveway Lump Sum Contract is a fixed-price agreement that locks in the total cost of your driveway installation or repair before the first shovel hits the ground. Instead of watching the meter run on hours and materials, you pay one predetermined amount—no surprises, no “extra” invoices, no sleepless nights.
At Drivewayz USA, roughly 80 % of residential jobs we complete are executed under this model because it gives homeowners three things they value most: certainty, speed, and control.
Why Homeowners Love a Driveway Lump Sum Contract
1. Budget Certainty
Knowing the final price up-front lets you plan the rest of your home-improvement calendar without fear of cost creep.
2. Faster Decision-Making
Contractors can order materials immediately after you sign, shortening lead times by 5–10 days on average.
3. Fewer Disputes
Because scope, specs, and price are fixed, disagreements over “extras” drop by almost 70 % compared with time-and-materials jobs, according to the National Association of Home Builders.
What’s Included in a Typical Driveway Lump Sum Contract?
Scope of Work
- Removal and disposal of old pavement
- Base preparation (grade, compact, geo-textile if needed)
- Material type, thickness, and color
- Edge restraints, joints, and drainage details
- Sealer coat and curing period
Material Specifications
Insist on PSI strength for concrete (usually 4,000 PSI for driveways) or asphalt mix design (⅜-inch top coat, 19 mm base). These numbers should be spelled out line-by-line.
Project Schedule
A good contract lists start and completion dates, weather-related extensions, and daily work hours. Ask for a calendar-day count, not just “2–3 days” that can stretch into weeks.
Warranty Terms
Look for a minimum 2-year warranty on workmanship and 5-year on structural integrity. Cracks wider than ¼ inch within the first year should be patched at no charge.
Typical Driveway Lump Sum Prices in 2024
Standard Asphalt (600 sq ft)
Range: $3,200 – $4,100
Average: $3,650
Plain Concrete (600 sq ft)
Range: $4,800 – $6,200
Average: $5,500
Stamped & Colored Concrete (600 sq ft)
Range: $7,200 – $9,000
Average: $8,100
Permeable Pavers (600 sq ft)
Range: $9,500 – $12,000
Average: $10,750
Prices include tear-out, disposal, base, surface, and sealer. Regional labor rates and access issues (fences, slopes) can swing numbers 8–12 %.
Driveway Lump Sum vs. Time & Materials vs. Cost-Plus
| Factor | Lump Sum | Time & Materials | Cost-Plus |
|---|---|---|---|
| Price Certainty | 100 % | 0–50 % | 50–70 % |
| Owner Risk | Low | High | Medium |
| Change-Order Ease | Formal | Informal | Informal |
| Contractor Incentive | Efficiency | Stretch hours | Markup on cost |
Step-by-Step: Signing a Driveway Lump Sum Contract
-
Request Fixed-Price Bids Only
Tell each contractor you will not accept T&M quotes. This keeps proposals apples-to-apples.
-
Compare Line Items, Not Just Bottom Line
One bid may skip rebar or sealer; another may include both. Adjust for missing items before you judge the “cheapest” offer.
-
Verify Insurance & License
Ask for certificates emailed directly from the carrier. A lump-sum price is meaningless if the contractor disappears mid-job.
-
Negotiate Payment Milestones
Typical: 10 % at signing, 40 % at material delivery, 40 % at substantial completion, 10 % final after 3-day walk-through.
-
Initial the Drawings
Even a simple sketch of layout, width, and drainage prevents “that’s not what I meant” debates later.
-
Keep 10 % Retainage
Hold back the last 10 % until you and the contractor sign a punch-list confirming every item is complete.
Red Flags That Void Fixed-Price Protection
Vague Allowances
Words like “allow $500 for aggregate” open the door to upsells. Demand exact quantities.
“Owner Supplied” Clauses
If you buy the sealer or reinforcement mesh yourself, the warranty may not cover failures related to those items.
Escalation Riders
Some asphalt contracts allow a price jump if oil futures rise >5 %. Strike this language or cap it at 3 %.
Hand-Written Changes
Always request a clean, revised contract PDF; scribbles in margins can be misread or “lost.”
DIY Pre-Contract Checklist (Print & Use)
- ☐ Measure total square footage; photo existing cracks
- ☐ Mark sprinkler heads and utility lines with flags
- ☐ Decide on material color and finish (bring samples)
- ☐ Check HOA rules on width, turn-around, color
- ☐ Verify city setback and apron requirements
- ☐ Ask neighbors for recent lump-sum invoices to benchmark price
- ☐ Prepare site photos for contractors who can’t visit same day
Driveway Lump Sum Contract FAQ
Yes, but any change must be documented in a written change order that lists new work, price adjustment, and revised completion date. Both parties sign before the change begins.
Most contracts include a “differing site conditions” clause. You’ll get a change order for soil stabilization or extra base stone at pre-agreed unit prices. Negotiate those unit prices up-front to avoid sticker shock.
It can appear 5–10 % higher at bid time because the contractor adds risk contingency. However, final cost overruns on T&M jobs average 15–25 %, making lump-sum the safer financial bet for most homeowners.
Spell it out in the contract. Typically the contractor includes permit costs in the lump sum and handles the application, but you should verify the fee amount on the city invoice to ensure transparency.