Lump Sum Turn Key (LSTK) projects allow the Client and Contractor to better coordinate efforts and control project costs. Under LSTK projects, the Client directs all questions, modifications and communications through a single Contractor entity, eliminating the need to contact numerous parties. If there is a problem, there is only one Contractor to deal with and the ability to point fingers elsewhere is eliminated.
Additionally, LSTK contracts are based on a specified and well-defined scope of work to be provided for an agreed upon fixed sum. This allows both the Client and the Contractor to address any proposed changes, discuss impacts to project cost and schedule and track the impacts of the changes more closely. This is much more efficient and cost effective than what is oftentimes seen in Time and Material (T&M) contracts, where the impact due to changes are rarely monitored or tracked.