Panel: Incentivized Target Cost Contracting
Recording: access here
The use of target cost contracts for major infrastructure projects is increasing in other jurisdictions around the world as owners and contractors seek greater opportunities for risk sharing and collaboration.
Under the target cost model, parties share in any cost overrun or cost saving rather than the traditional lump sum contract which often only allows one party to bear the pain of cost overruns or the gain of cost savings.
This webinar provides a general introduction to the target cost contracting model, giving insights into when and how the model is best deployed and flagging important issues for owners and contractors to consider in negotiating and administering target cost contracts.