NEC4: Engineering and Construction Subcontract
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The NEC4: Engineering and Construction Subcontract (ECS) is for appointing works subcontractors where the main works contractor has been engaged under an NEC4 Engineering and Construction Contract (ECC).
Containing the same definitions and procedures as an ECC contract, the ECS provides back-to-back protection for the main contractor and consistency of approach throughout the supply chain. It can include any level of design.
The document includes five main payment Options: A (priced subcontract with activity schedule), B (priced subcontract with bill of quantities), C (target subcontract with activity schedule), D (target subcontract with bill of quantities) and E (cost reimbursable subcontract). A different Option from the main contract can be used in each subcontract.
In addition to the main Options, the document contains everything you need to prepare, tender and manage an NEC4 ECS subcontract, including all secondary options and forms for the relevant cost schedules and contract data.
Background
The NEC4 ECS is part of the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement. The suite has a global track record for delivering all kinds and sizes of building and infrastructure projects on time, on budget and to the highest environmental and quality standards.
As with all NEC4 contracts, the parties to an ECS are required to act in a ‘spirit of mutual trust and co-operation’ and give early warnings of anything that could affect time, cost or quality so it can be mitigated without delay. Change is dealt with by a fast and fair compensation event process which, together with a continually updated and agreed programme, ensures there are no surprises at completion.
Core Clauses
- General
- The Subcontractor’s main responsibilities
- Time
- Quality management
- Payment
- Compensation events
- Title
- Liabilities and insurance
- Termination
Main Option Clauses
- Option A: Priced subcontract with activity schedule
- Option B: Priced subcontract with bill of quantities
- Option C: Target subcontract with activity schedule
- Option D: Target subcontract with bill of quantities
- Option E: Cost reimbursable subcontract
Resolving and Avoiding Disputes
- Option W1
- Option W2
Secondary Option Clauses
- Option X1: Price adjustment for inflation (used only with Options A, B, C and D)
- Option X2: Changes in the law
- Option X3: Multiple currencies (used only with Options A and B)
- Option X4: Ultimate holding company guarantee
- Option X5: Sectional Completion
- Option X6: Bonus for early Completion
- Option X7: Delay damages
- Option X8: Undertakings to the Client or Others
- Option X9: Transfer of rights
- Option X10: Information modelling
- Option X11: Termination by the Contractor
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X14: Advanced payment to the Subcontractor
- Option X15: The Subcontractor’s design
- Option X16: Retention
- Option X17: Low performance damages
- Option X18: Limitation of liability
- Option X20: Key Performance Indicators (not used with Option X12)
- Option X21: Whole life cost
Option X19 is not used.
- Option Y(UK)1: Project Bank Account
- Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
- Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999
- Option Z: Additional conditions of subcontract
- Schedule of Cost Components
- Short Schedule of Cost Components
- Subcontract Data
- Part one – Data provided by the Contractor
- Part two – Data provided by the Subcontractor
- Index
NEC4 X Clauses - X29 Climate Change - July 2022
NEC has published a new secondary Option that enables construction clients to engage their suppliers in the global drive towards net-zero greenhouse gas emissions and sustainability.
- NEC4 X29 - Engineering and Construction Subcontract
- NEC4 X29 - Engineering and Construction Subcontract Guidance Notes
NEC4 Y Clauses - February 2021
NEC is supporting the use of its contracts in Australia and Ireland by publishing secondary option Y clauses.
Y Australia Clauses - Y(Aus) Clauses
- NEC4 Y(Aus) - Engineering and Construction Subcontract
- NEC4 Y(Aus) - Flowcharts for all contracts
- Download all the Y Australia Clauses
Y Ireland Clauses - Y(Ire) Clauses
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