What does it mean?

 
Upon receipt the technical specification pack from the customer and after a careful analysis, we formulate our job offer to indicate lead times and cost. In this case we assume all risks regarding delays or any cost increases, and this will generally work out more expensive (in comparison with the Flat Rate method), as we need to cover our risks. This work style has as an additional disadvantage: the client MUST provide us a detailed Technical specification pack, on the basis of which we can build a fair offer;during the execution of the project, if the client wants to vary specifications, should provide a new release (update) of the specifications, which gives rise to a new offer. It will be then usual to draft (we usually do it) a Statement of Work (SOW) to manage any project activity including costs, deliverables, design reviews....
If the customer is not able to draft the technical specification pack and/or the SOW regarding the project he has in mind, we can also quote the drafting activities which will have to be done on its behalf.