Legal terms explained – Cost reimbursable contracts

A cost reimbursable contract is one in which the Contractor is reimbursed the actual costs incurred in carrying out works, plus a fee to cover their overheads and profit. It is also known as a cost plus contract.

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Risks underestimated on High Speed 2

Government underestimated the complexity of High Speed 2 and failed to openly recognise the programme’s risks from the outset, leaving it behind schedule and over budget, an audit of the scheme’s progress has said.

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HSE to oversee new building safety regime

A new Building Safety Regulator will be established within the Health and Safety Executive, Housing Secretary Robert Jenrick has announced.

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Carillion hospitals in danger of further delays

Significant risks of further delays and added costs have been identified on two PFI hospital projects which liquidated contractor Carillion was building at the time of its collapse in January 2018.

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News in Brief – Jan/Feb 2020

A fresh private member’s bill which aims to tackle payment abuse in the construction sector has been introduced to the House of Lords by Labour Peer Lord Mendelsohn.

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High speed vanity?

A ‘renaissance’ in UK infrastructure investment expected to be announced alongside the Budget in March has attracted a lot of comment, but few in the perennial political football that is the construction industry will yet have much confidence that anything transformational is likely to be a widespread agreement that private funding in some form will be needed in a post austerity world, with the current Chancellor of the Exchequer Sajid Javid promising an ‘infrastructure revolution’ as an extra £13 billion or so is pumped into public services. But the signs for private finance in any form are not good.

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Transparency urged on Scottish private finance schemes

Greater transparency is needed over the Scottish Government’s use of private finance to pay for billions of pounds worth of public building projects, Audit Scotland has said.

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High Speed 2 over budget after risks underestimated

Government underestimated the complexity of High Speed 2 and failed to openly recognise the programme’s risks from the outset, leaving it behind schedule and over budget, an audit of the scheme’s progress has said.

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Danger of further cost increases on Carillion hospitals

Significant risks of further delays and added costs have been identified on two PFI hospital projects which liquidated contractor Carillion was building at the time of its collapse in January 2018.

To read more of this and every other news story on this site, please log in with your Construction Law membership account details. If you don't have an account, you can get free access to the news on this site and receive a free newsletter on Fridays by creating a Newsletter account. See the panel to the right.

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