Contract Pricing Models and Cost Structures
The pricing model in a contract decides who carries the risk of things costing more than expected. This course covers the main models, when each is appropriate and how to protect against the weaknesses of each.
Course outline
What this programme covers, module by module.
- 01How the pricing model allocates risk
- 02Fixed price, unit rate and their failure modes
- 03Cost reimbursable arrangements and controlling them
- 04Target cost, incentive and gainshare mechanisms
- 05Escalation, indexation and currency provisions
- 06Open book, cost transparency and audit rights
- 07Verifying claimed costs and challenging them
What you will gain
- Compare the main contract pricing models
- Match a pricing model to the risk profile of the work
- Structure escalation and indexation fairly
- Control cost reimbursable arrangements
- Design incentive and gainshare mechanisms
- Audit and verify costs claimed under a contract
Who should attend
- Procurement and commercial professionals
- Contract managers and administrators
- Finance staff supporting contracts
- Project managers with commercial duties
Upcoming sessions
| Date | City | Duration | Fees | Book |
|---|---|---|---|---|
| 9 to 11 Nov 2026 | Durban | 3 Days | R13,000 | |
| 23 to 25 Nov 2026 | Cape Town | 3 Days | R13,000 | |
| 7 to 9 Dec 2026 | Johannesburg | 3 Days | R13,000 | |
| 11 to 13 Jan 2027 | London | 3 Days | US$1,500 | |
| 22 to 24 Feb 2027 | Dubai | 3 Days | US$1,500 | |
| 4 to 6 May 2027 | Pretoria | 3 Days | R13,000 | |
| 29 Jun to 1 Jul 2027 | Durban | 3 Days | R13,000 |
Fees are per delegate and exclude VAT. Public intakes are confirmed once minimum numbers are met. We also deliver this course on your own schedule, in-house or live online.
Enquire about this course
Register your team or ask for a tailored in-house quote. We reply within one working day.
WhatsApp usCourse brochure (PDF)- Fees from
- R13,000 per delegate
- Duration
- 3 Days
- Field
- Procurement & Supply Chain
- Formats
- In-house, public, online
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