Abstract
Contract schemes between project owners and contractors have been classified into two typical categories: Lump Sum Turn Key (LSTK) and Cost Reimbursable. In recent years, however, a new type of contract scheme called "Convertible LSTK" has been being adopted for some major plant engineering/construction projects and recognized for its effectiveness. Its role to mitigate project risks is analyzed, and its implications to the IT and other industries are also discussed.