Emerging cost contract - Revision history

Designing Buildings at 09:33, 15 October 2020

2020-10-15T09:33:49Z

← Older revision		Revision as of 09:33, 15 October 2020
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−	\| [[File:Costs.jpg]]	+	\| [[File:Costs.jpg\|link=File:Costs.jpg]]
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	* Target cost contract.		* Target cost contract.

−	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]	+	[[Category:DCN_Definition]] [[Category:DCN_Guidance]] [[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Editor at 11:53, 17 September 2019

2019-09-17T11:53:41Z

← Older revision		Revision as of 11:53, 17 September 2019
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		+	\| [[File:Costs.jpg]]
		+	\|}
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	Emerging cost (Time and Materials (T&M)) contracts are most commonly used for rail infrastructure projects.		Emerging cost (Time and Materials (T&M)) contracts are most commonly used for rail infrastructure projects.

Editor at 11:48, 17 September 2019

2019-09-17T11:48:48Z

← Older revision		Revision as of 11:48, 17 September 2019
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	However, while there may be target costs and schedules of rates for individual items of the programme of works, with associated incentives and penalties, there is no overall target cost. This means that the final value of the contract may not be known until the contract is complete. This can be useful where setting an overall target cost would restrict the client’s ability to vary the scope of works.		However, while there may be target costs and schedules of rates for individual items of the programme of works, with associated incentives and penalties, there is no overall target cost. This means that the final value of the contract may not be known until the contract is complete. This can be useful where setting an overall target cost would restrict the client’s ability to vary the scope of works.

−	This means the client is accepting many of the financial risks ~~for~~ the project, and must have the expertise and appropriate controls to manage those risks.	+	This means the client is accepting many of the financial risks of the project, and must have the expertise and appropriate controls to manage those risks.

−	Emerging cost contracts do provide for value engineering and for the right to terminate if the cost estimate reaches an agreed percentage above the original estimate.	+	Emerging cost contracts provide for value engineering and for the right to terminate if the cost estimate reaches an agreed percentage above the original estimate.

	Emerging cost contracts are often applied over a defined period of time. The longer this period of time, the more consideration the contractor is likely to give to long-term performance issues in design and workmanship.		Emerging cost contracts are often applied over a defined period of time. The longer this period of time, the more consideration the contractor is likely to give to long-term performance issues in design and workmanship.

92.2.63.180 at 09:45, 13 June 2019

2019-06-13T09:45:26Z

← Older revision		Revision as of 09:45, 13 June 2019
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	They are essentially cost reimbursable management contracts for a programme of works and services where the management contractor is paid direct costs identified in an 'estimate of project costs'. They provide for sophisticated management services along with sub-contracting the construction of the works.		They are essentially cost reimbursable management contracts for a programme of works and services where the management contractor is paid direct costs identified in an 'estimate of project costs'. They provide for sophisticated management services along with sub-contracting the construction of the works.

−	However, ~~whilst~~ there may be target costs and schedules of rates for individual items of the programme of works, with associated incentives and penalties, there is no overall target cost. This means that the final value of the contract may not be known until the contract is complete. This can be useful where setting an overall target cost would restrict the client’s ability to vary the scope of works.	+	However, while there may be target costs and schedules of rates for individual items of the programme of works, with associated incentives and penalties, there is no overall target cost. This means that the final value of the contract may not be known until the contract is complete. This can be useful where setting an overall target cost would restrict the client’s ability to vary the scope of works.

−	This ~~does mean that~~ the client is accepting many of the financial risks for the project, and must have the expertise and appropriate controls to manage those risks.	+	This means the client is accepting many of the financial risks for the project, and must have the expertise and appropriate controls to manage those risks.

	Emerging cost contracts do provide for value engineering and for the right to terminate if the cost estimate reaches an agreed percentage above the original estimate.		Emerging cost contracts do provide for value engineering and for the right to terminate if the cost estimate reaches an agreed percentage above the original estimate.
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	Emerging cost contracts are often applied over a defined period of time. The longer this period of time, the more consideration the contractor is likely to give to long-term performance issues in design and workmanship.		Emerging cost contracts are often applied over a defined period of time. The longer this period of time, the more consideration the contractor is likely to give to long-term performance issues in design and workmanship.

−	~~= Find out more =~~	+	= Related articles on Designing Buildings Wiki =
−		+
−	=== Related articles on Designing Buildings Wiki ===	+

	* Admeasurement.		* Admeasurement.

Editor at 12:03, 24 January 2017

2017-01-24T12:03:52Z

← Older revision		Revision as of 12:03, 24 January 2017
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	* Admeasurement.		* Admeasurement.
	* Construction contract.		* Construction contract.
		+	* Force account work.
	* Management contract.		* Management contract.
	* Procurement route.		* Procurement route.

Designing Buildings at 08:56, 14 January 2017

2017-01-14T08:56:22Z

← Older revision		Revision as of 08:56, 14 January 2017
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	* Management contract.		* Management contract.
	* Procurement route.		* Procurement route.
		+	* Remeasurement.
	* Sub-contractors.		* Sub-contractors.
	* Target cost contract.		* Target cost contract.

	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]		[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 10:17, 12 January 2017

2017-01-12T10:17:26Z

← Older revision		Revision as of 10:17, 12 January 2017
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−		+	Emerging cost (Time and Materials (T&M)) contracts are most commonly used for rail infrastructure projects.
−	Emerging cost (Time and Materials (T&M)) contracts are most commonly used for rail infrastructure projects.	+

	They are essentially cost reimbursable management contracts for a programme of works and services where the management contractor is paid direct costs identified in an 'estimate of project costs'. They provide for sophisticated management services along with sub-contracting the construction of the works.		They are essentially cost reimbursable management contracts for a programme of works and services where the management contractor is paid direct costs identified in an 'estimate of project costs'. They provide for sophisticated management services along with sub-contracting the construction of the works.
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*Construction contract.
−	*Management contract.
−	*Procurement route.
−	*Sub-contractors.
−	*Target cost contract.

−	[[Category:Appointments]]	+	* Admeasurement.
−	[[Category:Contracts_/_payment]]	+	* Construction contract.
−	[[Category:Procurement]]	+	* Management contract.
		+	* Procurement route.
		+	* Sub-contractors.
		+	* Target cost contract.
		+
		+	[[Category:Appointments]] [[Category:Contracts_/_payment]] [[Category:Procurement]]

Designing Buildings at 07:41, 9 October 2015

2015-10-09T07:41:35Z

← Older revision		Revision as of 07:41, 9 October 2015
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
−	*~~Contract~~.	+	*Construction contract.
	*Management contract.		*Management contract.
−	*Procurement route ~~(for a glossary of different procurement routes and links to further information)~~.	+	*Procurement route.
	*Sub-contractors.		*Sub-contractors.
	*Target cost contract.		*Target cost contract.

−	~~[[Category:Contracts_/_payment]]~~
	[[Category:Appointments]]		[[Category:Appointments]]
		+	[[Category:Contracts_/_payment]]
	[[Category:Procurement]]		[[Category:Procurement]]

Designing Buildings at 12:49, 7 March 2013

2013-03-07T12:49:00Z

← Older revision		Revision as of 12:49, 7 March 2013
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	*Management contract.		*Management contract.
	*Procurement route (for a glossary of different procurement routes and links to further information).		*Procurement route (for a glossary of different procurement routes and links to further information).
		+	*Sub-contractors.
	*Target cost contract.		*Target cost contract.

2.28.159.99 at 07:48, 1 February 2013

2013-02-01T07:48:10Z

← Older revision		Revision as of 07:48, 1 February 2013
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	=== Related articles on Designing Buildings Wiki ===		=== Related articles on Designing Buildings Wiki ===
	*Contract.		*Contract.
		+	*Management contract.
	*Procurement route (for a glossary of different procurement routes and links to further information).		*Procurement route (for a glossary of different procurement routes and links to further information).
	*Target cost contract.		*Target cost contract.