Published: 01 Aug 2011
This publication provides guidance to the Infrastructure Conditions of Contract Target Cost Version, which encourages active collaboration to reduce costs by sharing expertise and jointly managing risks in an open working environment, within the framework of the Infrastructure Conditions of Contract suite of contracts.
It encourages the Contractor to be more closely involved in aspects of design, provides for payment to the Contractor on a cost reimbursable basis and an incentive share arrangement if the costs differ from the target.
A more open style of control and management, which permits an early and joint approach to the identification and management of risks, obliges parties to recognise and understand each others objectives and promotes closer working relationships.
Choice of Target Cost Contract
Matters for the Employer to decide during the preparation of the Tender Documents
Tendering and Contractor Selection
Award of the Contract
Operation of the Contract
Engineers role in a Target Cost Contract
Notes on specific Clauses
Appendix 1. Bond
Appendix 2. Worked Example
Appendix 3. Proforma
Appendix 4. Retentions
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