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Air Liquide
2019-09-10 12:20:00

OPen Book meaning

My company entered into an 'Open Book' contract for supervisory works. Each Party has its own definition of the words 'Open Book', depending upon its own experience and interest.
Does it imply that there is no performance obligation, but only best efforts one?
Is it similar to "at cost"?

Is there any common understanding within the contract community for 'Open Book Contract'?
Thanks in advance
 •  ATCO Electric  •   2019-09-11 22:52:06
I have not used Open Book contracts, but as I understand open concept is applied to cost part. The contractor will share real cost with owner and get certain agreed profit margin over it. The contractor is not promising to do cheapest. Same time the performance obligation is not dropped, and contractor is required to provide the quality and warranty, if applicable. Open book would not imply cheapest at no performance assurance.
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