Managing target cost contracts

The use of target cost and cost reimbursable contracts has continued to grow over the last 10 years, particularly in the UK where most major programmes of infrastructure work are now undertaken on a target cost basis.

The success that target cost contracts have had in the UK has led to international interest in such approaches and major projects across the Middle East and Asia are now being undertaken under these arrangements.

This section covers how target cost contracts work, the oft over-looked tender assessment process and the forecasting of the final outturn cost of a project.

This section is maintained by Ian Heaphy.