Contract Practice - NEC3 ECC
Comprehensive Questions (Frequently
Tested) with Verified Answers Graded A+
What does NEC stand for? - Answer: New Engineering Contract
What does ECC stand for? - Answer: Engineering and Construction Contract
Please can you give me an overview of the NEC ECC contract? - Answer: - Suitable for any
construction-based contract between employer and a contractor
- It is intended to be suitable for any sector of the industry, including civil, building, nuclear, oil &
gas, etc.
- There are six main options to choose from
Key Points
- No reference to the QS in the contract
-PM assumes full authority on behalf of the employer
- PM controls time and cost as an administrative function
- PM updates the risk register and issues instructions
- It is widely accepted the contract generates a large volume of paperwork/administration
- The Programme is a contract document
- Requirement for parties to give early warnings
What are some of the perceived advantages of using the NEC ECC contract? - Answer: - The
contract is based on mutual trust and co-operation
- Focuses on pro-active risk management rather than on what happens when things go wrong
, - Encourages all parties to resolve cost and programme issue 'up-front' rather than waiting until
the final account
- The contract is written in plain English
What are the 6 main options (NEC3 ECC)? - Answer: - Option A: Priced contract with activity
schedule
- Option B: Priced contract with bill of quantities
- Option C: Target contract with activity schedule
- Option D: Target contract with bill of quantities
- Option E: Cost-reimbursable contract
- Option F: Management contract
Can you provide an overview of Option A please? - Answer: Option A is a priced contract with
an activity schedule where the risk of carrying out the work at the agreed prices is largely borne
by the contractor
The advantage of using an activity schedule is that its simplifies the administration of the
interim payment process. With subsequent interim payments being made against the
completion of each activity - so no partial payments
Key Points
- Lump sum contract
- Project is usually well defined at tender
- Payment on completion of defined tasks
- Suitable for tradition and design & build procurement routes
Can you provide and overview of Option B please? - Answer: Option B is a priced contract with
a bill of quantities (BoQ) where the risk of carrying out the work at the agreed prices is borne
with the contractor
Comprehensive Questions (Frequently
Tested) with Verified Answers Graded A+
What does NEC stand for? - Answer: New Engineering Contract
What does ECC stand for? - Answer: Engineering and Construction Contract
Please can you give me an overview of the NEC ECC contract? - Answer: - Suitable for any
construction-based contract between employer and a contractor
- It is intended to be suitable for any sector of the industry, including civil, building, nuclear, oil &
gas, etc.
- There are six main options to choose from
Key Points
- No reference to the QS in the contract
-PM assumes full authority on behalf of the employer
- PM controls time and cost as an administrative function
- PM updates the risk register and issues instructions
- It is widely accepted the contract generates a large volume of paperwork/administration
- The Programme is a contract document
- Requirement for parties to give early warnings
What are some of the perceived advantages of using the NEC ECC contract? - Answer: - The
contract is based on mutual trust and co-operation
- Focuses on pro-active risk management rather than on what happens when things go wrong
, - Encourages all parties to resolve cost and programme issue 'up-front' rather than waiting until
the final account
- The contract is written in plain English
What are the 6 main options (NEC3 ECC)? - Answer: - Option A: Priced contract with activity
schedule
- Option B: Priced contract with bill of quantities
- Option C: Target contract with activity schedule
- Option D: Target contract with bill of quantities
- Option E: Cost-reimbursable contract
- Option F: Management contract
Can you provide an overview of Option A please? - Answer: Option A is a priced contract with
an activity schedule where the risk of carrying out the work at the agreed prices is largely borne
by the contractor
The advantage of using an activity schedule is that its simplifies the administration of the
interim payment process. With subsequent interim payments being made against the
completion of each activity - so no partial payments
Key Points
- Lump sum contract
- Project is usually well defined at tender
- Payment on completion of defined tasks
- Suitable for tradition and design & build procurement routes
Can you provide and overview of Option B please? - Answer: Option B is a priced contract with
a bill of quantities (BoQ) where the risk of carrying out the work at the agreed prices is borne
with the contractor
