Guaranteed maximum price with target cost
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.’
[edit] Related articles on Designing Buildings
Featured articles
Check out some of the best features and news from Designing Buildings as well as key stories from around the web.
Construction Management, 8 July
NEETs crisis drives interest in trades, but apprenticeships barriers remain.
Passive fire protection webinar
MEP services penetration seals.
Where its at podcast (and video) - The role of the Architectural Technologist as an Expert Witness.
More than 200 remarkable buildings added to SAVE’s Buildings at Risk register.
Government scraps pre-application consultation for Nationally Significant Infrastructure Projects.
Historic England and infrastructure
New projects offer opportunities for the historic environment and local communities.
Construction Management, 2 July
Construction deaths halve in two years.
Green Book changes to drive investment in all parts of UK.
Minimum energy efficiency standards (MEES)
CIAT briefing on response to consultations for privately rented non-domestic properties.
Connect, collaborate, shape the future
Registration now live for UK Construction Week Birmingham.
CIOB announces Saul Humphrey FCIOB as new President for 26/27 term.
A quick, simple, and zero-bills solution to prevent overheating.