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Bob, a hard-working guy, wants to build a hotel with no construction knowledge. He hires a team of experts to design and execute the project within his fixed budget. X14 proposes a lump sum contract, where the contractor provides a fixed budget based on the finalized design. This type of contract is ideal for well-defined projects with minimal changes in requirements. Key features include fixed budget, specified quality, and minimal client risk. Advantages are minimal client risk and easier capital arrangement, while disadvantages include fewer variations and potential cost overruns.
