| manag. |
Open Book Estimate (In some instances which can be related to the time a project owner would like the project delivered, an engineering and construction company can be given work on a direct reimbursable basis to start with followed by conversion to LSTK once sufficient time and resources can be allocated to quantifying and pricing the scope of works. One method to convert from a reimbursable to LSTK Contract is called an Open Book Estimate or OBE in which the Contractor will open all their working documentation or books for representatives of the client to assess what the total scope of works for delivering the project will be. An agreed LSTK scope of works and price will be negotiated and agreed between EPC Contractor and Project Owner during the execution of EPC activities. Kenny Gray) |
