A Progressive LSTK (Lump Sum Turn Key) Contract is a type of the contracts that splits into phases where an agreed fixed price (lump sum) for a limited scope of work or reimbursable basis at the start of the project or each phase, and convert to lump sum fixed price after the project is fully developed. The Progressive LSTK (Lump Sum Turn Key) Contract can be applied in a very large project or urgent project to reduce the overall project especially, contract parties’ financial risks at the start of the project, and this increases flexibility to owner to incorporate requirements into the project until the project is fully developed.
Related Definitions in the Project: The Project Contract
