NEC – Target Cost Pain/Gain Mechanism Explained

Course Overview

The basic premise of target cost is that the client and contractor agree a ‘target cost’ for their construction project and then during construction the contractor is paid for the work undertaken on a ‘cost reimbursable’ basis. These payments are assessed by looking at the contractor’s records and accounts, generally on an ‘open book’ basis where the employer can inspect the ‘actual costs’ incurred by the contractor to complete the works.

So, where does pain and gain come in and how is it applied to such a contract?

What Does This Course Entail?

One Video

One Detailed Transcription

Key Points

One Quiz

How Long Will This Course Take?

20 minutes