it's one way of setting up a contract. assuming the primero people are reasonably competent they will price in risks into the fixed price to cover themselves. probably because they are in the room from ECI phase ans having imput to tye design.
it would be negotiated/agreed based on function of the plant at the end .i.e throughput or similar based on known condition. - eg we want to poxeaa x tonnes per year of this tyow of ore.
contrast that with an NRW job woth Rio for example. wg 200M bulk earthworks and concrete. most of which will be a remeasurable schedule of rates. they will agree cost per m3 and then ckaim based ob actual done with the design probably very different from the tender drawings.
all risk ob design is owned by the client. nrw claim on work done.
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