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We often hear that construction in the UK is expensive. Rising material prices, labour shortages, regulatory requirements and inflation are regularly cited as reasons why projects cost so much. But I think we need to ask a more uncomfortable question: How much of what we spend on construction actually contributes to delivering the finished project — and how much is spent managing inefficiency? Consider the costs associated with: 🔹 Incomplete designs and late information 🔹 P

Are You Recovering the Correct Costs Under Your NEC Contract? Recovery of Actual Costs in NEC Cost Reimbursable and Target Cost Contracts In the context of NEC (New Engineering Contract) cost reimbursable and target cost contracts, the recovery of actual costs is a crucial aspect that influences both the contractor's profitability and the client's financial exposure. This discussion focuses particularly on the fee structures and rates applicable in these contracts. Underst

What your estimating and commercial teams should check before committing to a fixed-price lump sum SAME WORKS. DIFFERENT COMMERCIAL RISK. If your business regularly works under NEC Option C (Target Cost) or Option E (Cost Reimbursable) contracts, your estimating and commercial teams will be familiar with managing Defined Cost, compensation events and changes as the project develops. Being asked to price the same type of work under a fixed-price lump-sum JCT Design & Build arr