NEC contracts—which form?
NEC contracts—which form?

The following Construction practice note provides comprehensive and up to date legal information covering:

  • NEC contracts—which form?
  • NEC3/NEC4 Engineering and Construction Contract (ECC)
  • Main Options
  • 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
  • NEC3/NEC4 Engineering and Construction Short Contract
  • More...

NEC contracts—which form?

This Practice Note is an introduction to the forms of contract in the NEC suites of contracts—NEC3 and NEC4—and looks at the factors that should be considered in deciding which to use. It explains the six NEC3/NEC4 Main Options that the parties can choose between when using the NEC3 or NEC4 Engineering and Construction Contract (ECC).

Note that NEC4 uses the term ‘Client’ rather than ‘Employer’ (the term which is used in NEC3): for ease of reference, where this Practice Note discusses both versions of the contracts, the term ‘Client’ is used to refer also to the Employer in the NEC3 contract. For a glossary of NEC terms, see Practice Note: NEC contracts—glossary.

In deciding which of the forms of contract in the NEC3 or NEC4 family is most appropriate for the project at hand, the Client must consider the following:

  1. its objectives in undertaking the project

  2. any constraints upon it (eg time, cost or experience) or relating to the project itself

  3. how the project is going to be funded

  4. what risks are involved in the completion of the project

  5. how it would like the various risks associated with the project to be allocated between the Client itself and the Contractor

  6. who is going to carry out the design of the works and who does the Client want to be responsible for that design

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