Target price contracts and how to make them work
Longley, Simon
Target price contracts and how to make them work - 2006 - Civil Engineering Surveyor September 2006, 33-37(5) .
Discusses target price contracts, whereby a target cost is agreed upon at the start of a project and then compared with the actual cost. Contractors can then share in any savings made, or contribute towards additional costs. Such an arrangement can be problematic because of the difficulty in setting a target price and the time consuming nature of dealing with the commercial side of the project. Guidance is offered as to how these problems can be overcome.
Target price contracts and how to make them work - 2006 - Civil Engineering Surveyor September 2006, 33-37(5) .
Discusses target price contracts, whereby a target cost is agreed upon at the start of a project and then compared with the actual cost. Contractors can then share in any savings made, or contribute towards additional costs. Such an arrangement can be problematic because of the difficulty in setting a target price and the time consuming nature of dealing with the commercial side of the project. Guidance is offered as to how these problems can be overcome.