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Bob, a hard-working individual, wants to build a hotel but lacks construction knowledge. To mitigate risks, he appoints a team of experts with a fixed budget. X14 proposes a step-by-step process: first, the architect team finalizes the design, then the contractor provides a fixed budget for project execution. The project is executed as per the design with no extra cost, known as a lump-sum contract. This type of contract is ideal when the project is well-defined, with minimal changes expected, allowing for accurately priced works. Key features include fixed budget, specified quality, and minimal client risk. Advantages include minimal client risk, fewer variations, and manageable payment plans, while disadvantages include limited flexibility.
