Table of Contents
Table of Contents 1. Outline of the NEC Contract a) Summary of the ethos & key aims of the Contract i. Stimulus to good management ii. Variations iii. Clear and simple language b) Strengths c) Weaknesses 2. Main Option Clauses a) List of main Option Clauses b) Summary and Comparison of Option Clauses c) Recommendation 3. Secondary Option Clauses a) 15 ‘X’ Secondary Options b) Two ‘Y’ Clauses c) Discussion of ‘Z’ Clauses d) Recommendation 4. Conclusion 5. References
1. Outline of the NEC Contract
‘The NEC Engineering and Construction Contract (ECC) (previously the New Engineering Contract) has been developed to meet the current and future needs for a form of contract to be used in the engineering, building and
…show more content…
Option D: ‘Main option D follows the same approach as main option C, except that a bill of quantities is used against which the final total of the prices is re-measured.’ (Rowlinson, 2011). Option E: ‘The employer pays for all the resources utilised by the contractor to carry out the works, following a formula employing various tendered rated and percentages, subject only to the disallowing of costs resulting from the contractor’s inefficient use of resources.’ (Rowlinson, 2011). Option F: ‘Provides a management contract option under which the contractor is paid a fee for carrying out prescribed duties.’ (Rowlinson, 2011).
The main difference between each option clause is the risk associated with each one however; the risk for the contractor and client will differ for each option clause. The contractor faces high risk if option A is used decreasing to low risk if option F is used. The client is the opposite where they face low risk if option A is used and high risk if option F is used.
c) Recommendation
The use of main option clause A should be adopted in the contract document for this project. This option minimises the risks associated with the project for the client and all responsibility is then placed on the contractors to complete the project on time and for the agreed price.
Aled Rhys Hughes 200714325
3. Secondary
Insurances The contract allows either the contractor or the owner to insure. Provision is also made for one party to take out and maintain the insurance where the nominated party fails to do so or fails to provide acceptable evidence that the insurance in is place
After the case of Ron Engineering, many transformations took place in the contracting laws of tendering. The contracts were given a brand new structuring and implementation which brought more transparency and reliability. The court established Contract A, which had be present prior to the construction contract—which was known as Contract B—where all the parties had beforehand thought was the exclusive contract concerned in the tendering process. Whenever an owner calls for bids, it proposes to enter automatically into a bidding contract i.e., Contract A. The contract automatically becomes a lawfully enforceable agreement as soon as the bidder submits its bid. In case the bidder’s offer is acknowledged, the owner and the bidder both then are contractually compelled by the tendering contract to come into the production contract i.e., Contract B.
The Construction Manager shall maintain, and require all of its professional consultants and subcontractors performing services in connection with this Agreement, to maintain insurance for the duration of the Project in such amounts and types as required below and in Article 11 of this Agreement. The insurance required shall be obtained from a company(ies) licensed to do
Through tendering it should be conducted systematically and involve a score matrix with standardised to bid/or not bid questions that will assist in determining whether to advances whilst removing personal opinion from the equation. It is vital that the mandatory requirements are reviewed for the bid some of which may include contractors
Clough, Richard H, Glenn A. Sears, S K. Sears, Robert O. Segner, and Jerald L. Rounds. Construction Contracting: A Practical Guide to Company Management. , 2015. Print.
1. Name and briefly describe each of the two basic types of competitively bid construction contracts. Which type would be most likely used for building the piers to support a large suspension bridge. Why?
Over the years the construction industry has developed a reputation for shady deals and untrustworthiness. Contractors specifically are the root cause of the mistrust between the industry and the public. When it comes to the relationships between contractors and subcontractors though there is still a mistrust even though both sides share the same unfavorable reputation. Often times contractors bully subcontractors into signing contracts that put them in very unfavorable positions. And after that subcontractors bully sub-subcontractors into signing equally unfavorable sub-contracts. However, not all contracts are terrible, what makes them so one sided are specific clauses that are inserted in an attempt to transfer responsibilities from the contractor to the sub and sub-subcontractors. Conditional payment and oversight responsibility are a couple of the types of clauses that attempt to do such work. Another clause in construction contracts attempts to protect the contractor and owner from each other with regard to change orders, it is included to force each party to put changes into writing. For the most part, no set of plans is perfect so inevitably changes must be made. So contractors and owners find themselves in yet another situation where both sides have the opportunity to be as unsavory as they can be. As the industry progresses into the future, many additional contract clauses will pop up. They will attempt to shift more responsibility and blame off the
Subcontractor is responsible to inform TEPSCO representatives of any change to original subcontract price. Unless a signed change order has been issued and approved, TEPSCO is not responsible for additional costs. The parties involved in this subcontract can change its provisions only by written modification.
3. If the contract doesn’t have applicable and similar cost in it, the contractor should propose a cost and submit to the stakeholders to get a approval, and carry out.
In construction projects, mostly the firms (in this case the firms become client) do not have the skills or develop skills inside the firms to undertake the projects due to amount of the projects should be conducted or the complexity of the projects (Reve and Levitt, 1984). Therefore, the economic decision to conduct the projects is to procure them to third parties. However, more commonly the client agonize the final quality of the projects will meet standard requirements. Thus, impacts to involvement of complex contracts of construction procurement.
Client and the contractor have same priorities. Basically, contractor will make the decision in turnkey approach and client will just accept in silent. In this project, the contractor and the client have the same focus and priorities therefore the relationship between the contractor and client is good and there is no overruns or communication problems between both sides.
This essay will examine how to best prepare a contract administration plan. The contract administration plan will examine different methods used in preparing a plan. This essay will explain how important it is to have technical and other support of personnel, the importance of surveillance, and to determine what functions need to be delegated, identify qualified personnel as well as authorized, it is necessary for the Contracting officer to be represented in administering contract requirements. Also there will be a discussion on what is determined
However, there are specific terms and conditions need to be addressed in the context of the project management in this case.
When engaging in a construction contract, time is of the essence and running over time projections can cause literally millions of dollars in additional non-contract costs. Therefore, construction contracts that can provide incentives to complete the project on time or early are beneficial because they effectively penalized contractors who fail to deliver on-time performance. With a CPIF contract, the
For this assignment the writer is going to discuss the nature and types of construction contracts and will explain the legal responsibilities of the various parties involved in the design and the construction process.