NEC Contract Options Explained: Understanding NEC Contract Terms and Conditions
hallieauthorThe NEC (New Civil Engineering Contract) is a popular construction contract in the United Kingdom and other countries. It is used for a wide range of projects, from small-scale renovations to large-scale infrastructure projects. The NEC contract terms and conditions are complex and detailed, covering various aspects of the construction project. In this article, we will explain the different NEC contract options and how to understand and apply the terms and conditions of the NEC contract.
NEC Contract Options
The NEC contract is divided into three main options: Standard Form, Partial Works, and Design, Build, and Operate (DBO). Each option has its own set of terms and conditions, which can be confusing for contractors and clients. Let's dive deeper into each option.
1. Standard Form
The Standard Form option is the most common and basic form of the NEC contract. It covers the planning, design, and construction of the project, as well as the maintenance and operation of the completed project. The Standard Form contract contains two stages: Stage 1 (initial stages of the project) and Stage 2 (completion of the project).
2. Partial Works
The Partial Works option is used when the project involves a series of smaller works that can be divided into separate contracts. This option is suitable for projects where the client wants to separate the different phases of the project to ensure better management and control. The Partial Works contract contains two stages: Stage 1 (initial works) and Stage 2 (completion of the project).
3. Design, Build, and Operate (DBO)
The DBO option is a unique form of the NEC contract, where the contractor not only builds and operates the project but also designs it. This option is suitable for projects where the client wants to ensure that the completed project meets their specific requirements and operates efficiently. The DBO contract contains three stages: Stage 1 (design and build), Stage 2 (commissioning and operation), and Stage 3 (handover and closure).
Understanding NEC Contract Terms and Conditions
The NEC contract terms and conditions are divided into five main parts: Legal Principles, General Conditions, Standard Conditions, Optional Clauses, and Additional Clauses. Each part contains various clauses that cover different aspects of the project. Here are some key terms and conditions to be familiar with:
1. Legal Principles
This part of the NEC contract contains the basic principles of the contract, such as the parties' obligations, dispute resolution, and amendments to the contract.
2. General Conditions
The General Conditions cover the general requirements of the project, such as the project schedule, safety, quality, and environment.
3. Standard Conditions
The Standard Conditions are the basic terms and conditions that apply to all NEC contracts. They cover various aspects of the project, such as payment, change orders, and termination.
4. Optional Clauses
The Optional Clauses allow the client and contractor to choose which clauses they want to include in the contract. These clauses cover various aspects of the project, such as subcontracting, changes to the contract, and extension of time.
5. Additional Clauses
The Additional Clauses cover any additional terms and conditions that are specific to the project. These clauses should be negotiated and agreed between the client and contractor.
Understanding the NEC contract options and terms and conditions is crucial for both clients and contractors. The NEC contract provides a clear and comprehensive approach to project management, ensuring that all parties are well-informed and able to make informed decisions. By understanding the NEC contract terms and conditions, clients and contractors can work together more effectively to achieve the best possible outcome for the project.