NEC vs JCT Flashcards
What is the difference in how price is dealt with between NEC and JCT contract?
JCT: fixed price lump cum contracts
NEC: Option B offers a price lump sum contract, but Options C and D are target cost contracts
What is the difference in how provisional sums are dealt with in NEC and JCT contract?
JCT: contains and allows for provisional sums
NEC: does not include for provisional sums
What is the difference in process for cost scrutiny between NEC and JCT contracts?
JCT: cost scrutiny is via tender analysis negotiations
NEC: cost scrutiny is via an open book procedure with the key concepts of defined costs and disallowed costs
What is the difference in risk allocation for ground conditions between NEC and JCT contracts?
JCT: risk for ground conditions lies with the contractor
NEC: uses the ICE foresee-ability test (at the point of contract was it reasonably foreseeable?)
What is the difference in approach to construction programme between NEC and JCT contracts?
JCT: the programme is not a contractual document
NEC: the programme is the heart of the NEC contract and is included within the contract documents. There is provision for updates to the programme regularly throughout a project
What is the difference in payment provision between NEC and JCT contracts?
JCT: payment section is clear, all contained in section 4 - generally 4 weekly/monthly
NEC: payments can either be set over specific periods, or can be related to completion of works in the programme
What is the difference between how Extensions of Tome and Loss & Expense are dealt with in NEC and JCT contacts?
JCT: EoT and L&E are two separate issues that are dealt with separately, all dictated by Relevant Events and Relevant Matters
NEC: Compensations events deal with both time and money, and they need to be dealt with in real time as dictated by the contract. If they are not raised at the time they cannot be raised at a later date
