Will a general contractor always prioritize the owner's interests when working under a lump sum contract?

In a lump sum contract, the general contractor is typically responsible for delivering a completed project for a fixed price. While they are obligated to fulfill the terms of the contract, their primary financial motivation is often to protect their own interests, as the profitability and risk management of the project directly impact their bottom line.

The contractor may still consider the owner's interests, especially if maintaining a good relationship could lead to future projects or referrals. However, since the contractor's profit margin and risk exposure are tied to completing the project within the agreed amount, they may prioritize their resource management and cost control strategies over the owner's interests, particularly in complex or high-stakes situations.

In many cases, this can lead to instances where the contractor may make decisions based on cost savings or efficiency that do not align perfectly with the owner's goals or vision for the project. Thus, the focus is often on balancing the needs of the project with the contractor’s own business objectives.