GLOSSARY

Target cost contract definition

Published by a LexisNexis Construction expert

What does Target cost contract mean?

A type of cost reimburseable contract under which the contractor is paid the ‘actual cost’ it incurs in carrying out the works, but is subject to a target cost which is agreed by the parties at the beginning of the project. At the end of the project, the parties apply a mechanism/formula to calculate whether savings were made or whether costs overran—the contractor will then either share the savings with the employer or contribute towards the overspend.

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NEC Term Service Contract

NEC Term Service Contract What is the NEC Term Service Contract? The NEC Term Service Contract, or TSC, is part of the NEC3 and NEC4 suites of contracts (see Practice Note: NEC contracts—introduction). The NEC Term Service Contract is designed to engage a contractor for a set period of time, to manage and provide a service—this might include construction works, but can be used for the provision of other services. The NEC Guidance Notes give examples of its use including maintenance of highways in a particular area, providing security personnel for a site, maintaining a nuclear power station, and providing ambulance services to a group of hospitals—in other words, both ‘hard’ and ‘soft’ facilities management services (see Practice Note: What is Facilities Management Contracting?). Like the other NEC forms, it can be used in the public and private sectors and could be used for services of any value. The NEC Term Service Contract is not intended to act like the NEC3/NEC4 Framework Contract under which there is no guarantee of work. Rather, the Contractor will carry out work continuously as stated in the contract without the need for a separate order from the Client, and/or it will carry out works instructed on a task by task basis. Other standard forms that work on a similar basis include the JCT Measured Term Contract 2011/2016 and the ICC Infrastructure Conditions

Waste to energy infrastructure projects—an introduction

Waste to energy infrastructure projects—an introduction Historically, the main treatment route for waste in the UK has been landfill, primarily due to the availability of suitable sites created by past mineral extraction. However, since the mid-1990s, use of landfill sites has been changing, as the potential impact of waste management on climate change has become recognised and legislation has made landfill less attractive. These developments have, in turn, helped drive the development of waste to energy plants, which is about taking waste and turning it into a usable form of energy. This waste to energy can include energy outputs such as electricity, heat and commodities such as transport fuels or natural gas. Many plants are now being built with energy generation, in addition to waste management, being a key part of their function. Each year the UK produces 22 tonnes of municipal (ie from households, retail etc) solid waste and 47 tonnes from business. Over time, increasing amounts of waste have been processed at Energy from Waste plants and, by 2020, over 50 Energy from Waste plants were operating in the UK. These plants are feeding increasing amounts of power into the grid. There remains potential for growth and investment in this industry despite a number of high-profile insolvencies facing several large contractors working in this sector. The bad publicity will be a deterrent to some entrants to

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Dispute Resolution weekly highlights—17 December 2020

This week's edition of Dispute Resolution weekly highlights includes analysis of a number of key judicial decisions, including Court of Appeal decisions in O’Neill v Holland (common intention constructive trusts) and Digby v Melford Capital (interim injunction costs) as well as two decisions on the Chorley principle in costs (David Poole v Scott-Moncrieff and Associates LLP and JH v CH & SAP) and a High Court decision on whether international flight restrictions due to the coronavirus (COVID-19) pandemic were a force majeure event terminating a contract (Fibula Air Travel Srl v Just-US Air Srl), together with coverage of key Brexit developments and coronavirus implications for dispute resolution lawyers and other key news including updated CE-File guidance for the Chancery Division and the Civil Procure Rules Committee’s 6 November 2020 meeting minutes; dates for your diary; details of our most recently published content; and other information of general interest to dispute resolution practitioners.

Public Law weekly highlights—10 December 2020

This week's edition of Public Law weekly highlights includes selected Brexit headlines including a reminder about our new Brexit transition hub, updates on key transition workstreams and priorities, further details on the implementation of the Withdrawal Agreement (and its impact on provisions of the UK Internal Market Bill and the new Taxation (Post-Transition Period) Bill), progress on the UK’s priorities and contingency planning beyond Brexit, as well as the latest Brexit transition guidance, Brexit legislation updates and Brexit SIs. Coronavirus (COVID-19) updates include the latest announcements on funding, a court ruling that regulations empowering the police to enforce self-isolation without judicial oversight to be lawful, plus updates on key legislation and operational guidance from the courts. Also in this edition, further updates on plans to repeal the Fixed-term Parliaments Act 2011, reports on the government’s review of the Human Rights Act 1998 and proposals for reforming the Supreme Court, plus analysis of the government’s new Construction Playbook and an inquiry into the assessment and provision of major transport infrastructure projects. Case analysis includes decisions on public procurement, contracts, regulation of intelligence gathering and judicial review, including a Supreme Court ruling on discretion to make costs order against a neutral public body after a successful judicial review claim.

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