CHL Insulation 15/16

NEC3 Option C (Target Cost) based improvement of insulation provision (external wall; internal wall; loft and cavity wall) in social housing properties. This includes the extraction of defective cavity wall insulation.

Using the ‘Option C: Target Cost with Activity Schedule’ pricing option allows the Contractor and Employer to share most of the financial risks and rewards involved in undertaking the works. In this case the risks and rewards derive from the difference between what the Contractor has included in the Tendered Total of the Prices in the activity schedule at RFQ stage and the actual cost for the work carried out to achieve what is required by the Works Information and all other contract documentation.

The share of the financial risks and rewards is done via the ‘Contractor’s share’. The Contractor’s share is the difference between the total of the Prices (the target cost) and the Price for Work Done to Date (the actual cost).

The target costs are set at RFQ stage and adjusted if there are any accepted compensation events.

The Price for Work Done to Date is the Defined Cost plus the Fee. This forms the actual cost. The Price for Work Done to Date (actual cost) is what is submitted at each payment application. For this contract the Price for Work Done to Date corresponds directly to what is carried out on site.

Populate ‘CHLHIP_EN00001_AS’ with the Prices to complete each activity as specified in the contract documents i.e. the Defined Cost plus the Fee to complete all the works necessary to complete each activity as specified in the contract documentation. The sum of the individual activities makes the Tendered Total of the Prices.

Not all properties require every activity to be undertaken. It is indicated in ‘CHLHIP_EN00001_AS’ what activities are to be undertaken to what properties. In some cases other documents are referenced which included further Works Information. Some of these referenced documents are property-specific whereas others are generic.