We generally use construction projects in this book to illustrate procurement examples, however, other business sectors embrace similar procurement forms. Manufacturing, car, ship and aerospace assemblies often use a form of design and construction (Graham 1999; Womack and Jones 2000). This second chapter explores procurement options using a cost risk perspective. Figure 2.1 illustrates the continuum along which the project delivery systems can be categorised. At one extreme lies the traditional 'fixed cost' (and usually fixed time) project. At the other is the fully cost reimbursable project. Procurement options for clients can be viewed through a cost risk/relationship risk perspective. The initial tender cost can be fixed with all risk being absorbed by the contractor. Alternatively, the client can absorb a cost risk by letting variable sum contracts and adopting an open book philosophy in which incurred costs arc verified or a for- mulated schedule of agreed rales for various aspects of the work is agreed upon.