What are the NEC contract options?

In the NEC ECC the main options are:

  • Option A: Priced contract with activity schedule.
  • Option B: Priced contract with bill of quantities.
  • Option C: Target contract with activity schedule.
  • Option D: Target contract with bill of quantities.
  • Option E: Cost reimbursable contract.
  • Option F: Management contract.

What is option C NEC contract?

Option C is a target cost contract with an activity schedule where the out-turn financial risks are shared between the client and the contractor in an agreed proportion. This document contains all the core and secondary option clauses, the schedules of cost components, and contract data relevant to an option C contact.

What is option B on NEC contract?

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 is the NEC standard form of contract?

The New Engineering Contract (NEC), of which the Engineering and Construction Contract (ECC) forms a part, is a suite of standard form construction contracts created by the Institution of Civil Engineers. There have been three editions: the first in 1993, the second in 1995 and the most recent – NEC3 – in June 2005.

How many types of NEC contracts are there?

There have been four editions, the first in 1993, the second in 1995, the third in 2005 and the most recent in 2017. The NEC3 was launched in 2005 and it was amended in April 2013. NEC4 was announced in March 2017 and has been available since June 2017.

What is NEC option D?

Option D provides for a target cost with a bill of quantities: A target cost introduces a mechanism that enables the contractor, and/or the consultant team, to share in the benefits of cost savings, but also to bear some of the cost when there are cost overruns. This is typically shared in a pre-agreed proportion.

What is NEC option F?

Option F is a cost reimbursable management contract where the financial risk is taken largely by the client. This document contains all the core clauses and secondary option clauses the schedules of cost components, and contract data, relevant to an option F contract.

What is an engineering contract?

The Engineering Contract is an undertaking or agreement by a contractor or firm to carry any engineering work or any engineering-related work under certain imposed terms and conditions.

Are NEC3 contracts still used?

Who uses NEC3 contracts? NEC3 contracts have become public sector contracts of choice in the UK. They’re used for nearly all projects procured by national and local government bodies and agencies.

When would you use NEC option A?

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

What is NEC option E?

Option E is a cost reimbursable contract in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. The financial risk involved is largely taken by the client.

What is the new engineering contract (NEC)?

The New Engineering Contract (NEC) is a series of contracts designed to manage a project – particularly a civil engineering project – from start to finish, with the aim of preventing costly disputes. Did you know …

What does the NEC3 course cover?

In addition, the NEC3 course will also cover in detail, the very necessary practical commercial skills that you need, as well as the general principles of the law of contract.

What is an engineering and construction contract?

When it was first launched in 1993, it was simply the “New Engineering Contract”. This specific contract has been renamed the “Engineering and Construction Contract” which is the main contract used for any construction based project.