Comparisions between NEC and JCT Flashcards
Explain what a programmes of Work is and is it included in; JCT and/or NEC?
JCT
The JCT Contract does NOT have a programme as a
contractual document.
NEC
But programme of work IS at the heart of the NEC
ethos. It is a Contractual Document and to be Regularly
Updated.
It must include key concepts such as a float, completion float and time risk allowances.
Compare the NEC and JCT regarding Insurance
JCT
JCT Contract contains comprehensive detail in relation to insurances at clause 6 and Schedule 3.
NEC
The insurance detail is very brief (cl.84). The NEC Contract is silent on some insurance. The missing insurances relate to existing buildings insurance and adjacent property insurance, and need to be included in the additional insurances section of the Contract Data Part 1.
Compare JCT and NEC regarding Cost and Time Related Issues
JCT
Generally, in a JCT Contract there may be some cost scrutiny via the contract sum analysis and tender negotiations
When it comes to extensions of time and loss and expense, the JCT Contract has relevant events/matters. Time and money is dealt separately.
NEC
Cost: NEC Contract has an open book procedure with the key concepts of defined cost and disallowed cost
The NEC Contract has the compensation event (clause. 60. 1 –19)
Compensation Events are to be dealt with in real time as much as possible and is process driven.
The compensation events also have a condition precedent nature, and failure to notify the compensation event within the 8 week period can have dire consequences.
How is the Programme of Work (Schedule) treated in JCT and NEC?
JCT
not used in any other provision of JCT
requires the contractor to submit a master programme for execution of the works as soon as the contract is finalised.
There are no details as to what should be included in
programme.
There are no requirements to submit revisions of this programme from time to time or when this programme becomes inconsistent with actual progress or contractor’s obligations.
NEC
a more detailed set of documents that make up the
programme to be submitted at the regular basis prescribed by the employer.
When accepted by the project manager, this
becomes the source by which;
- change’s are assessed,
- progress is monitored
- early warnings and compensation events are written in the Programme of Work
Explain the impact of the Programme of Work in NEC
Failure to submit the first programme and sanction thereafter results in deductions of payments (the project manager assesses change on behalf of the contractor)
NEC also provides for key dates; in the event to have deliverables or outcomes by stated dates, where sectional completion is not appropriate.
NEC further allows for incentivising the contractor to finish early through an option for a bonus for early completion provision.
A further feature of NEC is its early warning process where both the project manager and contractor are required to notify each other of any matter which could affect time, cost or quality.
The earliest indication of such a problem followed by a risk reduction meeting allows the contractor and project manager to focus on avoiding/reducing the problem as best as they can, this being in the interest of both parties to the contract.
Who acts on behalf of the Client in the JCT and NEC?
JCT: Contract Administrator
NEC: Project Manager
State the similar features between NEC and JCT
Each has an allotted person to act on behalf of the
employer
They both include obligations relating to time, cost and quality, although the explicit requirements are quite different.
NEC includes procedures providing for a more proactive and collaborative approach to managing the contract and requires the parties to follow these procedures.
NEC drafting features centre around flexibility, clarity and simplicity, and a stimulus to good management.
Compare the NEC and JCT in regards to General Administrative Decisions?
Decision Making
JCT
‘if’ the CA becomes aware of any divergence between statutory requirements and the contract documents, it shall give an immediate notice to the contractor - clause 2.17.3;
Within seven days or becoming aware of such divergence, the CA issues instructions.
In JCT, this subjectiveness in becoming aware is limited and not extended to wider matters.
A CA may never become aware of any divergence until a situation arises unless the Contractor makes the CA aware.
The contractor should not be prejudiced and can obtain relief in clause 2.17.3 so that he will not be penalised for carrying out non-compliant works that are stipulated in the contract documents.
NEC
the PM must notify the Contractor of any matter which could increase, delay or impair the works as soon as he/she becomes aware. This is worded much wider than in JCT
If PM fails to notify the contractor of a compensation event when it should have done, the contractor will not
necessarily be time barred from applying for relief for time and additional cost (61.3)
What is Work Information, and what is included in it?
Compare the NEC and JCT in regards to Work Information
Work Information is technical information, specifications, and drawings describing the works,
NEC
The Contractor is obliged to follow the Work Information (by the PM) otherwise a compensation event may occur.
The Employer’s Works Information has priority over the
Contractor’s Works Information under ECC sub clause
60.1(1).
JCT (JCT Employers Requirements)
There is no guidance on what should be included in the JCT employers requirements.
It is mainly use in D&B and the Two-stage open book procurement. In D&B, it is important to provide a specific, rigid, brief outline as the client has very little control over the design team afterwards.
