Twenty5 Blog

Managing construction risk means more than choosing fixed-fee or reimbursable. See why better estimating, not a different contract, is the real fix.

Engineering firms are operating in the middle of a structural change in how services are bought and sold. Time-and-materials contracts, once the industry norm, are giving way to fixed-price, lump-sum, and outcome-based agreements that place far greater commercial responsibility on the delivery organization. Clients want predictability of cost, schedule, and results, and are increasingly unwilling to absorb the financial risk of inefficiency or uncertainty.