3.
ཡ ེ་
from the point of view of its application and the ting
baken to arrange 16; and where, moreover, the magnitude
of the works requires co-operative efforts by the client
phe engineer and the contractor to complete the conta
the minimum time. The target contract requames she
contractor, subject to certain limications, to work within
an agreed parget price and provides for any savings which
the contractor makes compared with the agreed standard, 20
be shaped between the contractor and the client.
In general outline the operation of e terge: contract would
be as follows;
a.)
the best possible assessment of the overall cost 02
the work would be made and used as the Initial Target
Price. In this case the Initial Target Price could
be taken as the sum arrived at in paragraph 1.2
1.2.5
after updating to include an allowance for escalaploa
during the contract period and any refinements which
may be possible before the signing of the contract as
a resul of additional Information becoming available,,
Targe rates would be agreed prior to the signing ca
the contract for such secpions of the work as could
ap chap time be adequately defined. These targez
rates would be incorporated in bills of quantipies,
All quantities would be subject to repeasurement
Additional target raves would be agreed as further
information becomes available or 28 changes occur.
1