What are NEC conditions of contract?

The NEC contracts are intended to: Stimulate good management. Be clear and simple, written in plain English, in the present tense and without legal terminology. Be useable in a wide variety of situations from minor works to major projects.

How is the NEC contract structured?

flexibility: NEC3 can be constructed from nine sections of core clauses, six main options, two dispute resolution options and seventeen secondary options. However, in practice most of NEC3 contracts include considerable bespoke amendments – known as the ‘Z’ clauses as they form part of Option Z under the contract.

What is NEC contract data?

NEC define the contract data as information that ‘…needs to be completed as part of the necessary contract documents; in the ECC this contains details such as starting date/Completion Date/employer details/defects date and the like. The location of the works information and site information.

What is NEC options?

NEC Option C is a cost reimbursable contract set against a target contract price, more commonly known as the target cost. The NEC defines cost through its schedule of cost components (SoCC). There is also definition as to what is allowable and disallowable.

What is NEC3 Option B?

Option B is a priced contract with a bill of quantities where the risk of carrying out the work at the agreed prices being is borne by the contractor. This document contains all the core and secondary option clauses, the shorter schedule of cost components, and contract data, relevant to an option B contract.

What are the NEC3 core clauses?

Core clauses are referred to in the New Engineering Contract (NEC) suite of documents. These are standard forms of construction contracts published by the Institution of Civil Engineers (ICE) and form the basis for many major construction projects in the UK and overseas.

Is NEC3 a design and build contract?

NEC3 Design and Build Contracts have been used on some of the highest profile projects in the world, including the London 2012 Olympics, as well as every day projects like construction of buildings, highways and process plants.

How does NEC Option C work?

‘The NEC Option C is a target cost contract with activity schedule where the out-turn financial risks are shared between the client and the contractor in an agreed proportion. Throughout the works the Contractor is reimbursed for his “Defined Costs” plus fee minus any “Disallowed Costs”.

What are NEC3 Z clauses?

Z clauses can be used and inserted into NEC contracts to allow the parties to agree additional terms and conditions, in order to cater for specific needs relating to a project and the terms of its delivery.

What is defined cost in NEC3?

Broadly speaking, Defined Costs are the actual costs incurred by the Contractor on the Works minus retention and any costs which would fall within the overheads covered in the Fee. From those are deducted “Disallowed Costs”. “Disallowed Cost” is defined by Clause 11.2(25).