Option D is a target cost contract with a bill of quantities 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 D contract.
Construction Clients' Board endorsement of NEC3
The Construction Clients' Board (formerly Public Sector Clients' Forum) recommends that public sector organisations use the NEC3 contracts when procuring construction.
Standardising use of this comprehensive suite of contracts should help to deliver efficiencies across the public sector and promote behaviours in line with the principles of Achieving Excellence in Construction.
• 1 General
• 2 The Contractor’s main responsibilities
• 3 Time
• 4 Testing and Defects
• 5 Payment
• 6 Compensation events
• 7 Title
• 8 Risks and insurance
• 9 Termination
Dispute resolution W
• Option W1
• Option W2
Secondary option clauses
• X1 Price adjustment for inflation
• X2 Changes in the law
• X4 Parent company guarantee
• X5 Sectional Completion
• X6 Bonus for early Completion
• X7 Delay damages
• X12 Partnering
• X13 Performance bond
• X14 Advanced payment to the Contractor
• X15 Limitation of the Contractor’s liability for his design to reasonableskill and care
• X16 Retention
• X17 Low performance damages
• X18 Limitation of liability
• Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
• Z Additional conditions of subcontract
Note Options X3, X8 to X11 and Y(UK)1 are not used
Schedule of Cost Components
Shorter Schedule of Cost Components
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