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meet Bob a very hard-working guy he wants to build a hotel but he doesnt have any knowledge and construction so he appoints a team of experts bob has fixed budget and dont want to take any risk he wants complete design before starting the project so x14 proposed followings first on architect team finalize the design based on it contractor gives fixed budget to execute the project then agreeing with Bob to execute the project as we have designed with no extra cost so what is this lump-sum contracts means lump sum contracts generally suitable where the project is well defined and vital changes the requirements are not expected this means that the contractor can perfectly price the works they are being asked to execute so following are the key features of the lump sum contract fixed budget specified quality contractors risk advantages of fixed price contracts clients risk is minimal fewer variations the client can arrange capital according to the payment plan and disadvantages are cont
