The unique feature of nuclear decommissioning contracts is the high emphasis on incentives for the contractor. At the focal point of the legal and commercial relationship are the target-cost clauses in the tier two contract (see 9 April, page 50).rnTarget-cost arrangements provide a tangible benefit to the contractor if the decommissioning is completed ahead of the target price, but claims and disputes are common when the target price is exceeded. Tier two contractors will normally have their liability capped, but given the sums at stake, it is sensible to argue that the target-cost clauses do not apply if there has been a change in scope or acts of prevention by the employer that caused delays.
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