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Busting Myths about Reimbursable Contracts

Event Date

Jun 30, 2011

Type

Conference Presentation - Implementation

Research Team

RT-260

Slides

Topic

Reimbursable Contracts

DOCUMENT DETAILS

Abstract

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Abstract

Lack of defined scope, significant project complexity and risk, owner and contractor staffing considerations, and schedule pressures often compel owners to consider reimbursable contracting methods for their projects. Owners face a steep learning curve when they first employ reimbursable (or any other) contracting. To help those new to reimbursable contracting avoid many pitfalls and to implement it successfully, CII commissioned RT-260 to investigate what makes a reimbursable contract successful for both the owner and the contractor. Using research team expertise, questionnaires, CII Benchmarking and Metrics data and case studies, RT-260 identified key findings for the reimbursable contracting process in six categories: Contracting Strategy Selection Risk Allocation Strategy Contract Development Contractor Selection Process Contract Management Reimbursable Contract Control Clear definition of the cost reimbursement compensation structure is of critical importance in reimbursable contracting. This, strong project controls, personnel experienced in reimbursable contracting, transparency, and integrated owner-contractor decision-making increase the potential for successful reimbursable contracting outcomes.

Filters & Tags

Knowledge Area

Procurement & Contracts, Project & Program Management, Risk Management

Project Phase

Concept, Detailed Scope, Detailed Design (Engineering), Procurement, Construction

Project Function

Project Management, Project Controls, Procurement & Contracts, Risk Management, Business Development & Proposals

Industry Group

Light Industrial, Heavy Industrial, Buildings, Infrastructure

Research Topic

Reimbursable Contracts

Keywords