1586 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 2 terms

Fixed-price contract

Fundamental analysis

Also called: Fixed price contract

A contract at one agreed price for a defined scope, leaving input cost movements with the contractor.

In plain terms

The margin is set on the bid date and can only get worse unless the scope changes. Orders won in a cheap-input year are the ones to date.

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Lump sum turnkey

Fundamental analysis

Also called: LSTK

A fixed-price contract in which the contractor also carries design responsibility and delivers a working facility.

In plain terms

One price, one contractor, one deadline, and every design and input risk on the same balance sheet.

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