NEC4 Options Explained:A Guide to Navigating the NEC4 Contracts
hallstromauthorThe NEC4 contract series is a widely used standard form of construction contract in the United Kingdom and other parts of the world. It is a popular choice for both public and private sector clients, as well as contractors and consultants, due to its flexibility, clarity, and focus on risk allocation. This article aims to provide an overview of the NEC4 options available under the contract, as well as advice on how to navigate the various clauses and obligations.
NEC4 Options
The NEC4 contract series offers a wide range of options that can be tailored to suit the specific needs of the client and the project at hand. Some of the key options available under the NEC4 contract include:
1. Option B: This option is designed for projects with a relatively short timetable and limited resource management requirements. It is suitable for small to medium-sized projects with a straightforward scope and limited risk.
2. Option C: This option is suitable for projects with a longer timetable and more complex resource management requirements. It is particularly suitable for large and complex projects with a wide range of potential risks and uncertainties.
3. Option D: This option is designed for projects with a very long timetable and extensive resource management requirements. It is suitable for very large and unique projects with a very high level of risk and uncertainty.
4. Option E: This option is tailored for projects with a limited scope and focused resource management requirements. It is suitable for projects with a relatively small budget and limited scope, such as renovation and refurbishment projects.
Clause 12: Option to Cancel
One of the key features of the NEC4 contract is the option to cancel, which allows the client to terminate the contract for convenience or the contractor to terminate the contract due to the client's failure to perform. Under Clause 12, the client and contractor must agree on the reason for cancellation and the effect on the balance of the work. It is important for both parties to carefully consider the consequences of cancellation, as it may have significant financial and reputational implications.
Clause 13: Partial Claims
Clause 13 of the NEC4 contract allows for the submission of partial claims, which are claims for part of the work completed or the costs incurred. Partial claims can be submitted at any time during the project, provided they are supported by appropriate evidence. It is essential for both parties to maintain accurate records and communicate clearly to avoid any potential disputes over partial claims.
Clause 14: Payment
Clause 14 of the NEC4 contract details the payment procedures and terms for the project. Under this clause, the client and contractor must agree on a fixed date for payment, which is usually based on the percentage of the work completed. It is crucial for both parties to closely monitor the payment process and ensure that all invoices are properly submitted and paid in a timely manner.
Clause 15: Risk Allocation
Clause 15 of the NEC4 contract outlines the risk allocation between the client and contractor. This clause helps to define the responsibilities and obligations of both parties, as well as the potential consequences of risks that may affect the project. It is important for both parties to carefully review and understand their respective risk responsibilities under the contract to avoid any potential disputes or misunderstandings.
The NEC4 contract series offers a wide range of options that can be tailored to suit the specific needs of the client and the project at hand. By understanding the various clauses and obligations under the NEC4 contract, both the client and contractor can make informed decisions and navigate the contract more effectively. It is essential for both parties to work closely together to ensure a smooth and successful project delivery.