ICC Target Cost Version 2018
Produced in partnership with Keystone Law
ICC Target Cost Version 2018

The following Construction guidance note Produced in partnership with Keystone Law provides comprehensive and up to date legal information covering:

  • ICC Target Cost Version 2018
  • Scheme of the contract in outline
  • The engineer (clause 5)
  • Completion and correction of defects (clause 10)
  • Sub-contractors
  • Variations and additional payment
  • Measurement and payment
  • Payments
  • Claims
  • Disputes
  • more

The Infrastructure Conditions of Contract (ICC) for Civil Engineering Works originated in 1945 as the ICE Conditions of Contract. Following various updates, 2014 saw a major revision and the publication of a new ‘With Quantities Version’ (see Practice Note: ICC With Quantities Version 2014). In June 2018, two new ICC contracts were published—the Target Cost (TC) Version and the Design and Construct Version (see Practice Note: ICC Design and Construct Version 2018). This Practice Note provides guidance on the ICC TC Version 2018.

In 2011, the Association for Consultancy and Engineering published the first edition of the TC Version. That was based upon the ICE Conditions of Contract 7th edition and modified for target cost use. The 2018 TC Version is completely rewritten and follows the approach and drafting of the 2014 Without Quantities Version. However, the 2011 TC Version and the 2018 TC Version have the same collaborative approach of the parties jointly managing risk.

Many clauses in the 2014 With Quantities Version and the 2018 TC Version are identical. However, changes relating in particular to valuation, cost and payment are significant, reflecting the intention to share the losses and benefits of cost overruns and savings.

Scheme of the contract in outline

The contract includes a form of tender and works data specifying the works and the extent to which any