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Draw a sketch to show the characteristic of the following target cost contract, in addition draw the expected final price curve according to the following:

Draw a sketch to show the characteristic of the following target cost contract, in addition draw the expected final price curve according to the following:

Cost increase share = 75% by owner; Share saving = 15% by contractor; GMC = 290,000 SR; GMP = 300,000 SR; Minimum fee = 10,000 SR, Target cost = 200,000 SR; and Maximum fee = 35000 SR.

Analyze the following situations:

  • If Cost = 225,000 SR find the project profit and price?
  • If Profit = 25,000 SR find the project cost and price?
  • If Price = 225,000 SR find the project cost and profit?

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