Selecting the right contracting strategy is crucial to managing project risk, scope, and value in infrastructure and industrial projects.
1. Scope Responsibility
LSTK includes design, procurement, and construction; LSPB excludes design and focuses solely on procurement and construction deliverables.
2. Risk Allocation
LSTK transfers most project risk to the contractor; LSPB shares more risk with the client, especially during the design stage.
3. Client Involvement
LSTK reduces client input post-award; LSPB requires client oversight and coordination during the design-to-procure interface phase.
4. Delivery Flexibility
LSTK offers a single point of accountability; LSPB allows more control and flexibility, especially when design is client-driven or evolving.
Procumart: the Power of the Procurement 