NEC and JCT Contract Flashcards
NEC Pre Contract
Contract Approach: Pro active and flexible and encourages early contractor involvement
Tendering Process: Open book and target cost options are available
Risk Allocation: Emphasises early engagement and risk sharing
Contract Structure: Modular with core clauses and optional ones tailored to project needs
JCT Pre Contract
Contract approach: Prescriptive and risk-averse
Tendering Process: More structured and less flexibility in pricing options
Risk Allocation: Placed more on the contractor
Contract Structure: Standardised contracts with variations depending on procurement type
NEC Post Contract
Project Management: Active management with regular communication and collaboration
Payment Mechanism: More flexible with Early Warnings and Compensation Events to assess cost/time impacts
Changes & Variations: Changes are managed through Compensation Events, which require agreement on time and cost impacts
JCT Post Contract
Project Management: More reactive and administratively focused with formalised procedures
Payment Mechanism: Follows a structured payment schedule with Interim Valuations and Variation Orders
Changes & Variations: Variations follow a formal instruction process, often requiring negotiation on cost/time
What is a bill of quantities
A document that provides a list of the estimated costs of materials, labour and equipment for a construction project. Has the prices and quantities.
