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Meet Bob, a hard-working individual with a dream to build a hotel. Lacking construction knowledge, he hires a team of experts for the project with a fixed budget and a desire to avoid risks. The team proposes a plan: an architect finalizes the design, the contractor quotes a fixed budget to execute the project based on the design, and then executes the project as designed without additional costs. This is known as a lump-sum contract, ideal for well-defined projects with minimal changes expected. Key features include a fixed budget, specified quality, reduced contractor risk, and advantages such as minimal client risk, easier capital arrangement, and fewer variations. Disadvantages may include constraint in making changes.
