Target Cost Contracting Forms with ICE NEC3

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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 Contractor’s 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



Close Course Content

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