NEC4: Engineering and Construction Contract Option A: priced contract with activity schedule
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The NEC4 Engineering and Construction Contract (ECC) Option A is the priced main works contract with an activity schedule. It can include any level of design, and is ideal for relatively straightforward projects where the client has a fixed budget and is confident of its contractor’s willingness and ability to manage financial risk.
The contractor prices activities in the client’s activity schedule and the client simply makes interim payments on completion of each activity. The contractor largely bears the financial risk of carrying out the activities at the agreed prices and prices the contract accordingly.
The document contains everything you need to prepare, tender and manage an NEC4 ECC Option A contract, including all relevant secondary options and forms for the cost schedule and contract data.
Background
The NEC4 ECC is the main works contract in the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement. It 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 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 Contractor’s main responsibilities
- Time
- Quality management
- Payment
- Compensation events
- Title
- Liabilities and insurance
- Termination
Resolving and Avoiding Disputes
- Option W1
- Option W2
- Option W3
Secondary Option Clauses
- Option X1: Price adjustment for inflation
- Option X2: Changes in the law
- Option X3: Multiple currencies
- 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 Client
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X14: Advanced payment to the Contractor
- Option X15: The Contractor’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
Options X19 and X22 are 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 contract
- Short Schedule of Cost Components
- Contract Data
- Part one – Data provided by the Client
- Part two – Data provided by the Contractor
- 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 Contract
- NEC4 X29 - Engineering and Construction Contract 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 Contract
- NEC4 Y(Aus) - Flowcharts for all contracts
- Download all the Y Australia Clauses
Y Ireland Clauses - Y(Ire) Clauses
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