I dont 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.
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18 years 6 monthsRE: NEC Contract
Francis,
I dont 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