Common use of Target Cost Clause in Contracts

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];