By Michael Rowlinson
Introduced in 1993, the NEC Engineering and building agreement has turn into one of many UK's prime common sorts of agreement for significant building and civil engineering initiatives. The 3rd version, popularly referred to as NEC3, is a approach established agreement embodying venture and advertisement administration top perform, so its uncomplicated philosophy differs from the extra opposed technique of different general development contracts. because the first version of this booklet, the 3rd variation of the agreement has noticeable the creation of a brand new secondary alternative to be used within the united kingdom and amendments to a few clauses. furthermore, in September 2011, adjustments have been brought to cater for the amendments to the Housing offers, development and Regeneration Act 1996 inside the neighborhood Democracy, monetary improvement and development Act 2009, which turned potent for all new contracts entered into from 1 October 2011. those amendments were integrated into the textual content. a realistic consultant to the NEC3 Engineering and development agreement might be precious to every body within the development engaged on a venture lower than this agreement. it will likely be of curiosity to the total development offer chain, together with employers, development professions, contractors and sub-contractors, in addition to specialists and attorneys advising any of those events, both within the guidance of agreement documentation or the each day administration or the answer of challenge occasions which could come up.
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Additional info for Practical Guide to the NEC3 Engineering and Construction Contract
5). When dealing with specific processes and procedures in this guide, the WHO, WHAT, WHEN and HOW will be summarised as appropriate in each case. 4 Mandatory or discretionary The second part of the formula I learnt that evening was to consider whether an obligation, requirement or procedure was mandatory or discretionary. The distinction is quite clear: if something is mandatory then it must be done in order to create a right for you and/or an obligation on someone else. If something is discretionary, then the party concerned can do it if they feel it is appropriate but lose nothing if they do not.
Each subcontract is entered into between the Contractor and the subcontractor and the Employer pays the actual cost of each such subcontract to the Contractor. The Contractor’s fee will increase in line with any increases in the cost of the subcontracts. 1 gives a simple comparison of the key additional clauses of the six Main Options. It can be seen from this table that whilst there are common factors between some of the Main Options, no two are identical. It is this variance which creates the changing risk profile as the user considers one option against another.
The primary change is how the definition of the term ‘Price for Work Done to Date’ acts to determine the amount due for each payment. 3. 1 Comparison of the six Main Options. 8 The numbers in the table correspond to clause numbers in the Main Option. 1 in Appendix 1 for the sections where each clause is referred to in this book. 1, not just the part of it referred to in the title of the chapter. When people come to the ECC for the first time and are shown this clause, most of them find that their attention is immediately focused on the phrase ‘spirit of mutual trust and cooperation’ which brings the clause to a close.