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Section 2— The Contractor's Main Responsibilities

Clause 26.2

Contractor Share — Target Cost

Purpose

Under main options C and D, the Contractor's share of the difference between the target cost and the actual Defined Cost is calculated. The share percentage is stated in the Contract Data.

Practical Application

The Contractor Share incentivises cost efficiency. If actual Defined Cost is below target, the Contractor receives a share of the saving. If above target, the Contractor pays a share of the overspend.

Common Pitfalls

The share percentage applies to the total difference, not incremental amounts. Understand the share bands and percentages in the Contract Data before tendering.

Related Clauses

Clause 26.3

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.