What best describes the characteristics and advantages of a Lump-Sum Contract?
1
The quantity of each work item is meticulously measured, thereby carrying a higher risk for the owner.
2
The contract undertakes specific work for an indefinite amount, the cost of which is uncertain at the beginning
3
The contractor undertakes a specific task for a definite lump-sum amount, providing low risk to the owner and a known cost.
4
This system is primarily used for industrial works and carries equal risk for the owner and the contractor.