Level 1 - JCT Vs NEC

Question 1

What are some of the Key difference between JCT and NEC Contract?

Answer 1

• Provisional Sums – JCT Contract contains provisional sums. NEC does not.
• Programme – JCT the programme is not a contractual document whereas programme is at the heart of the NEC ethos, it’s a contract document and needs to be updated regularly.
• EOT / Loss & Expense – JCT has relevant events and relevant matters and time and money is dealt with separately. NEC has compensation Events which deal with both time and money

Question 2

What are the NEC main options?

Answer 2

• 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.

Question 3

What is a Target Cost Contract in NEC?

Answer 3

• Target Cost is agreed
• Works undertaken on a cost reimbursable basis
• Open Book policy
• Pain / Gain mechanism – Risks are shared between the contractor in an agreed proportion