Target Cost Sample Clauses
A target-cost clause establishes a predetermined cost baseline for a project or contract, against which actual costs are measured. In practice, this clause sets a target amount that both parties agree upon, and any cost savings or overruns are typically shared between the parties according to a specified formula. The core function of a target-cost clause is to incentivize cost control and efficiency, aligning the interests of both parties to manage expenses and avoid budget overruns.
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Target Cost. If Architect and CM/GC are directed to proceed with the Target Value Design and preparation of the Target Cost pursuant to Section 9.5, the Core Group, in conjunction with the Senior Management Team, shall establish a milestone date for development of the Target Cost for the Project. The Architect, in collaboration with the IPD Team Members, shall develop and submit the Target Cost to the Core Group for approval. The Target Cost shall be based upon the Owner’s Project Business Case, the Validation Study, and the Target Value Design Plan. The Target Cost and CM/GC's cost models shall include an estimate, based on the information then available, of the following:
10.1.1 total cost to Owner of all elements of the Cost of the Work for the Project, including the total costs of professional services, labour, materials and supervision to be furnished by Architect and CM/GC during the Validation Phase, Design and Procurement Phase, the Construction Phase, and the Post-Construction Phase;
10.1.2 At-Risk Amounts;
10.1.3 [Not Used];
10.1.4 [Not Used];
10.1.5 IPD Team Contingency;
10.1.6 [Not Used];
Target Cost. The Target Cost: approved by the Contract Administrator under clause 6.2(d); or agreed or determined under clause 6.7(d)(iii), and set out in the Contract Particulars (Delivery Phase), which is to comprise: the Contractor's Work Fee (Planning); the Management Fee; the Contractor's Work Fee (Delivery); and the Target Reimbursable Costs.
Target Cost. 7 7. CHANGES IN THE SCOPE OF WORK ....................................... 8 8.
Target Cost. Description: here the Parties would agree a budget and then work would be carried out by the Service Provider in a mix of time and materials and fixed price models with it being agreed that the Service Provider would not charge more than the target cost. Such target cost may be linked to assumptions and dependencies.
Target Cost. 6.1 The SUPPLIER agrees to work in a cooperative manner with CLAR▇ ▇▇ design each Instrument Pod to Achieve a Target Cost on a manufactured basis set forth in 6.3 below.
6.2 The SUPPLIER shall maintain an up-to-date bill ▇▇ material (BOM) based on SUPPLIER'S standard costs of materials and labor for each version of the Instrument Pod including assembly labor. The BOM for each Instrument Pod shall be available for CLAR▇'▇ ▇▇▇pection upon request. CLAR▇ ▇▇▇ SUPPLIER shall conduct a cost review of each BOM upon the completion of the prototype Milestone set forth in Article 5 (i).
6.3 Each cost review in 6.2 is an early warning indicator of whether future production costs will be reduced on a per-unit basis to be at or below Target Cost. At each cost review, CLAR▇ ▇▇▇ll decide whether to continue the development of the existing designs, revise the design specifications to further reduce the projected unit cost, terminate one or more of the Instrument Pod developments, in whole or in part, without terminating the others, or terminate the Agreement because in the opinion of CLAR▇, ▇▇e SUPPLIER will be unable to meet the Target Cost for one or more of the Instrument Pods. The Target Costs for each Instrument Pod design for the applicable truck chassis are as follows: DESIGN TARGET TARGET TARGET VERSION COST (1) COST (2) COST (3) ------- -------- -------- -------- (Per Pod) (Per Pod) (Per Pod) Diesel $99.75 $95.00 $92.15 Gas $99.75 $95.00 $92.15 LPG $93.45 $89.00 $86.33 Target Cost: (1) up to 12,110 units; (2) from 12,111 to 17,300 units; and (3) from 17,301 to 22,490 units of production of all design versions for 12 calendar months.
6.4 The Target Cost does not include the incremental cost of optional rocker switches, or connector interfaces, which upon approval by CLAR▇, ▇▇all be added to the applicable Target Cost.
Target Cost. 3.4.1. The solution shall have a design cost less than 10 USD and It should include sensors and interface electronics.
Target Cost. The Owner and Risk/Reward Team Members will jointly and collaboratively develop a Target Cost that incorporates all Chargeable Costs, to design and construct the Project based on the Owner's Program Objective. Any ICL Milestone distributions will be measured against the Target Cost. The Target Cost is part of the Project Objective and will be amended into the Agreement as Exhibit B-2.
Target Cost