Designing Buildings: Created page with "[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/987140/Risk_allocation_and_pricing_approaches_guidance_note_May_2021.pdf Risk all..."

2021-10-21T07:50:56Z

Created page with "[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/987140/Risk_allocation_and_pricing_approaches_guidance_note_May_2021.pdf Risk all..."

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[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/987140/Risk_allocation_and_pricing_approaches_guidance_note_May_2021.pdf Risk allocation and pricing approaches, guidance note], published by the Government Commercial Function in May 2021 suggests that a guaranteed maximum price with target cost (or target cost incentive fee) is: ‘Based on a ‘target cost’ and a ‘guaranteed maximum price,’ under this mechanism, there is gain and pain share between the parties depending on the extent to which there is a difference between actual costs and the target cost. The supplier is wholly responsible for costs above the guaranteed maximum price.’

= Related articles on Designing Buildings =

* Cost plus.
* Firm price.
* Fixed price.
* Guaranteed maximum price.
* Payment by results.
* Price.
* Procurement.
* Target cost.
* Time and materials.
* Volume-based payment.

[[Category:DCN_Definition]] [[Category:Definitions]] [[Category:Contracts_/_payment]] [[Category:Cost_/_business_planning]] [[Category:Procurement]]

Guaranteed maximum price with target cost - Revision history

Designing Buildings: Created page with "[https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/987140/Risk_allocation_and_pricing_approaches_guidance_note_May_2021.pdf Risk all..."