Contract Practice

Question 1

What is a Target Cost contract?

Answer 1

Target cost is set, risk is shared and the savings/overspend are shared between the Parties at the allocated share percentages.

Question 2

How does Sectional Completion work in terms of defects?

Answer 2

Defects Date only begins upon Completion of the whole works

Question 3

How does notifying defects differ before and after Completion?

Answer 3

Clause 44 of the Contract:
- Before Completion – only to correct any Defects which would prevent the Client from using the works (and any other reason stated)
- After Completion - Defects must be corrected by the end of the defect correction period