In an open-book contract, the buyer and seller of work/services agree on (1) which costs are remunerable and (2) the

margin Margin may refer to: Physical or graphical edges *Margin (typography), the white space that surrounds the content of a page *Continental margin, the zone of the ocean floor that separates the thin oceanic crust from thick continental crust *Leaf ...

that the supplier can add to these costs. The project is then invoiced to the customer based on the actual costs incurred plus the agreed margin. It is essentially the same as what is known (especially in the U.S.) as a

cost-plus contract A cost-plus contract, also termed a cost plus contract, is a contract such that a contractor is paid for all of its allowed expenses, ''plus'' additional payment to allow for a profit.EPCI EPCI stands for Engineering, Procurement, Construction and Installation, a common form of contracting arrangement within offshore construction. The acronym ''EPIC'' for ''Engineering, Procurement, Installation & Commissioning'' is also used. Unde ...

contract). Open-book contracts in

third-party logistics Third-party logistics (abbreviated as 3PL, or TPL) in logistics and supply chain management is an organization's use of third-party businesses to outsource elements of its distribution, warehousing, and fulfillment services. Third-party logistic ...

services were popularised by John Anthony Harvey CBE, head of Tibbett & Britten Group plc, between 1984 and 2004. UK public sector bodies are required to consider open book contracting across their contracting portfolio.Crown Commercial Service
Open Book Contract Management
May 2016, accessed 16 December 2019

References

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References

See also