Page 95 - BASIC GUIDELINE FOR QS

Professional Practice: Guideline for Quantity Surveyor Chapter 3

Cost plus target fee

The use of this method required a target fee to be set for the project prior to the signing

of the contract. Have incentive factor to contractor to reduce or minimize project cost if
the actual cost is lower than targeted cost.

However if the actual cost is higher than targeted cost, contractor payment will be

deducted based on the agreed fee/percentage

Table 3.4: Calculation of Cost Plus Target Fee

84