Contract management can be a daunting task, especially when dealing with complex projects that involve numerous stakeholders and parties. To simplify this process, NEC4 Suite of Contracts offers a range of options to suit different project requirements. In this article, we will review these options and the benefits they bring to various projects.
NEC4 Contracts
NEC4 Contracts are designed to provide a clear and concise framework for managing different types of construction projects. They offer an integrated approach to managing multiple stakeholders and work streams, with a focus on collaboration and communication.
NEC4 offers a range of standard contracts, including the Engineering and Construction Contract (ECC), Professional Services Contract (PSC), and the Supply Contract (SC). Each of these contracts is designed to suit specific project requirements, such as the scope of work, project timeframe, and budget.
NEC4 also offers further options that can be tailored to meet specific project requirements.
Option A – Priced contract with activity schedule
This option allows the contractor to submit prices for each activity in the project schedule. This helps to provide a level of transparency and enables the employer to control costs by monitoring the schedule.
Option B – Priced contract with bill of quantities
This option is similar to Option A but is based on a bill of quantities, which provides a detailed description of the work required. This option is suitable for projects where the scope of work is clear and well-defined.
Option C – Target contract with activity schedule
In this option, the contractor is paid an agreed target cost plus an incentive fee for completing the work within the agreed timeframe. This option is suitable for projects where the scope of work is unclear or where the timeline is of the essence.
Option D – Target contract with bill of quantities
This option is similar to Option C, but is based on a bill of quantities. It is suitable for projects where the scope of work is clear, but the timeline is of the essence.
Option E – Cost reimbursable contract
This option is suitable for complex projects where the scope of work is undefined, or where the project involves a high number of changes. The contractor is reimbursed for all costs incurred, plus an agreed fee for overheads and profit.
Option F – Management contract
This option is suitable for projects where the employer wants to retain control over the project but needs assistance in managing the work. The contractor is responsible for managing the project, but the employer retains control over key decisions.
Option X – Collaboration
This option is designed to foster collaboration and communication between the parties involved in the project. It encourages early engagement, open communication, and a focus on common goals to improve project outcomes.
Conclusion
NEC4 Suite of Contracts provides a range of options to manage different types of construction projects. Each option is designed to suit specific project requirements, enabling employers to adapt the contract to their specific needs. By providing a clear and concise framework for managing multiple stakeholders and work streams, NEC4 Suite of Contracts offers a collaborative approach to contract management, resulting in better project outcomes.