ICE Conditions of Contract Target Cost Version, First Edition

Book excerpt: Helps towards delivering construction projects on time by enabling better client-contractor communication. This publication will help towards delivering construction projects on time by enabling better client-contractor communication. The new contract allows the employer, usually with the assistance of the contractor, to set a clear target for the cost of the civil engineering works to be carried out, in order to avoid projects overrunning on cost and deadline. ICE's latest contract also encourages the contractor to be more closely involved in the project at an early stage, such as project design, and provides an incentive for the employer and contractor to share profit or loss if the costs differ from the original estimation.To utilise the Target Cost Version effectively, a more open style of control and management is required which will permit an early and joint approach to the identification and management of risks. This is intended to lead to better channels of communication at an early stage between client and contractor. The Target Cost version - the latest member of the ICE Conditions of Contract family - has been produced due to industry demand.