Types of Contract
According to the approach adopted by the author, types of contract are the means by which the responsibilities and risks are allocated among the primary stakeholders in the project implementation process. These are the responsibilities and risks that are associated with the expected project result in its entirety and for the entire duration of the implementation phase. Thus, contract types are differentiated based on the extent to which a certain contractual arrangement shifts the majority of the above-mentioned responsibilities and risks onto the client or the external contributors.
The early literature (e.g., Thompson 1981; Perry 1985) does not clearly differentiate contract type from payment type. However, Thompson ...