One stakeholder, speed of execution and a streamlined process.
This type of contract promotes faster execution of projects because it is not necessary to solicit bids for each mandate. The process is simplified and management costs are reduced by limiting contact to the contractor and client and removing intermediaries from the process. However, because there is no pre-determined amount, as in the fixed-price contract, the budget must be more flexible and may be adjusted during the mandate. With a fixed budget, certain work may have to be prioritized.
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