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Sound and Vision 3 Application Form (Published February 2015) Summary checklist for all Applicants: 1I have registered with BAIonline2I have checked the Contractor for my programme is also registered

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How to fill out nec target cost contracts

01

Understand the key components of the NEC target cost contracts.

02

Collaborate with the other party to agree on the target cost and how it will be shared.

03

Clearly define the scope of work, deliverables, and any assumptions or exclusions.

04

Establish a risk register to identify potential risks and agree on how to manage them.

05

Regularly monitor and report on costs incurred to ensure they remain within the target cost.

06

Document any changes or variations to the contract in a timely manner.

07

Upon completion of the project, reconcile the final costs with the target cost and share any over or under spend as per the agreed terms.

Who needs nec target cost contracts?

01

Construction companies and contractors who want to share the risk and reward of a project with the client.

02

Clients who want to incentivize contractors to complete a project within a set budget and timeline.

03

Any party involved in a project where there is uncertainty around costs and risks and a collaborative approach is desired.

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What is nec target cost contracts?

NEC target cost contracts are a type of contract where the total cost is pre-agreed, with the contractor incentivized to meet targets.

Who is required to file nec target cost contracts?

Contractors who are working under NEC target cost contracts are required to file these contracts.

How to fill out nec target cost contracts?

NEC target cost contracts can be filled out by inputting the relevant project details, cost estimates, and target objectives.

What is the purpose of nec target cost contracts?

The purpose of NEC target cost contracts is to incentivize contractors to control costs while meeting project objectives.

What information must be reported on nec target cost contracts?

Information such as project details, cost breakdowns, target costs, and payment terms must be reported on NEC target cost contracts.

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