The newly developed course will cover the principles of Target Cost Contracting, the arrangement created by the new ICE Target Cost Version and the approach of the NEC 3 ECC Options C and D. The forms of contract will also be compared.
The relationship of Target Cost Contracting with partnering and other modern practices will also be considered.
Course Content:
Overview
Target Cost Contracting
The arrangement
The New ICE 2006 Form
NEC 3 ECC Options C and D
Comparison with other contractual relationships
Allocation of risk and adjustment of target
Developing a strategy
Fit with other modern practices including partnering, frame working and KPIs
Setting the target
ICE Target Cost Version, First Edition 2006
The Contract Form; the documents; pre-contract knowledge and information; conflict of documents
The Engineer role and responsibilities
Obligations of the Contractor, including quality and scope of work, design, sub-contracting, management materials, workmanship and insurances
Time for performance, progress, programme, commencement, delays, acceleration, extension of time, liquidated damages for delay, completion and substantial completion, defects and making good
Financial arrangement; payment mechanism, timing and amount of certificates
The Contractors share benefits and burdens; setting the share
Target Cost Contracting The ICE and NEC 3 Models Compared
Comparison of the approach to financial risk and payment
The target mechanism, evaluation of payment and adjustment and the nature of risk under the two forms
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