Form of Contract - The Burgundy Book - Target Cost Contract 2nd Edition

The intention of a target cost contract is to encourage both parties in the contract to work together in order to find ways of carrying out the work as efficiently as possible and to be rewarded as a result (ie pain/gain share). The Burgundy Book is used for either setting the target cost at the time of making the contract or for agreeing the target cost during the contract, typically when the detailed scope of work has been agreed but before commencement of any construction or manufacture of the plant.

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