NEC Contract

O
Oliver Melling 👤 Member for 19 years 1 month

Francis,



I don’t think this target price contract type is solely for the NEC3 suite of contracts.



However, a target price contract is one where a ’target’ price is agreed in the planning stage of the project.



The risk is shared between the contractor and the client by agreeing that any overpspend will be shared. I have come across a few different methods such as splitting the overspend by a percentage or making the overspend reimbursible at full rate minus profit.



HTH



Oliver

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