Target Contract. Target Contract" shall mean any Contract: (a) to which any Target Company is a party; (b) by which any Target Company or any of their respective assets is or may become bound or under which any Target Company has, or may become subject to, any obligation; or (c) under which any Target Company has or may acquire any right or interest.
Target Contract. The contractor is paid on a cost-plus percent basis of work performed under this contract. • A target cost contract is an agreement between the contractor and a client wherein they negotiate a target cost based before signing the contract on an estimate of the expenses which will be incurred for the project. BOT CONTRACT • A build-operate-transfer (BOT) contract is a model used to finance large projects, typically infrastructure projects developed through public-private partnerships. • The contractor undertakes to design, finance and operate and maintain the works for a concession period in consideration. DOCUMENTS FOR AN ENGINEERING CONTRACT • Invitation of tender/bid • Enquiry documents • Eligibility requirements to bid • Technical requirements for preparation and submission of the bid • Performance of the work under the contract • Preparation and submission of tenders • Tender documents – To be prepared by the tenderer and submitted • Evaluation, acceptance of the tender and award of contract TENDER • A Tender is a written document in which work details are mentioned. • It is a document which is publicly released or sent to eligible suppliers or contractor who are willing to fill it and take the work. • A tender document helps in a tendering process that helps a buyer select qualified and interested suppliers based on certain contract criteria. • Broadly this is pricing documentation and quality criteria. TENDER DOCUMENTS • Invitation of bid • Instruction to bidders • Information to bidders & bid data • Biding forms • General conditions of contract • Specific condition of contract • Specification • BOQ • Drawings • Contract forms TENDERING PROCESS • Tendering is the process of inviting bids for large projects, it is usually practiced by government institutions. • The main objective of the Tendering Process in Construction is to eliminate favoritism and corruption in awarding works to construction companies. Xxxxxxx Xxxxx X. INVITATION OF BID Dept. of Civil Engineering, BMSCE BID DETAILS Xxxxxxx Xxxxx X. Xxxx. of Civil Engineering, BMSCE Source: xxxxx://xxxxx.xxxxxxxxx.xxx.xx/ CONDITIONS OF ELIGIBLITY Dept. of Civil Engineering, BMSCE Xxxxxxx Xxxxx N. Source: xxxxx://xxxxx.xxxxxxxxx.xxx.xx/ CONDITIONS OF ELIGIBLITY ESTIMATE DETAILS BREACH OF CONTRACT • It is said to have occurred when one of the parties in the contract fails to fulfil his part of responsibilities under the contract due to which the complete performance of the contract becomes impossible ...
Target Contract. The contractor is paid a fixed fee on a prime cost basis for the work performed under the contract and in addition he receives a percentage on the savings effected against either a prior agreed estimated total cost or a target value arrived without changing the specification. • It was presumed that by proper management of the work, the contractor can reduce the cost of work. But due to tremendous increase in the cost of materials it never materialise and hence this system is not getting popularity. Advantages: • Low risk on the owner, and to the contractor. • Cost can be reduced relatively. • Contractor selection is easy. Disadvantages: • Tremendous increase in the cost of materials. • High quality can’t be achieved.
Target Contract. In this system the contractor is paid on a cost plus percentage basis for work performed under this contract and in addition he receives a percentage plus or minus on saving or excess effected against either a prior agreed estimate of total cost or a target value arrived at by measuring the work on completion and valuing at prior agreed rates. The advantage of this contract is that contractor is encouraged to use his skill and experience in keeping the cost as low as possible. This type of contract is thus profitable to both the contractor as well as to the owner. The only disadvantage may be that the contractor may show higher cost of construction and thus may gain more amounts even covering the penalty for excess expenditure.
Target Contract. The contractor is paid on cost plus percentage basis of work and in addition he receives a percentage plus or minus on savings or excesses effected against a prior agreed estimated by measuring the work on completion and valuing at prior agreed rates
