Research on the Application of Target Cost Contract in Construction Projects
As competition is fierce in the construction market,the contact price of construction projects is close to the actual cost price.Compared to the traditional fixed unit price and fixed lump sum model,the Target Cost Contract(TCC) provides a new way for owners and contractors.Based on the introduction to the concept and characteristics of TCC,this paper illustrated the operation mechanism by the mathematic model and theoretical analysis.For the specialty of TCC,risks during the process of construction need be properly managed,especially the changes of scope and errors or omissions of the tender documents.At last,this paper discussed its advantages and disadvantages.Some suggestions were put forward to promote its implementation.