What is NEC3 option B?

Posted on July 5, 2021
by Yunus Cook
July 5, 2021
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What is NEC3 option B?

Option B is a priced contract with a bill of quantities where the risk of carrying out the work at the agreed prices being is borne by the contractor. This document contains all the core and secondary option clauses, the shorter schedule of cost components, and contract data, relevant to an option B contract.

What is NEC 4 option B?

NEC4 Option B: Priced Contract with Bill of Quantities From the employers specified bill of quantities, the contractor then prices the works and therefore bears the risk of carrying out those works at the agreed prices.

What are the NEC options?

In the NEC ECC the main options are:

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.

Is NEC option a lump sum?

Option A – priced contract with activity schedule, Lump sum price for the Works. Lump sum may change if a “Compensation Event occurs or the Employer varies the Works”. Likewise if the Works are completed for less than the target price, the Contractor and Employer share the “gain” – pain share/gain share mechanism.

What is NEC option E?

Option E is a cost reimbursable type contract where the financial risk is taken largely by the client. This document contains all the core clauses and secondary option clauses the schedules of cost components, and contract data, relevant to an option E contract.

What is nec3 option C?

Option C is a target cost contract with an activity schedule where the out-turn financial risks are shared between the client and the contractor in an agreed proportion. This document contains all the core and secondary option clauses, the schedules of cost components, and contract data relevant to an option C contact.

How does NEC option C work?

‘The NEC Option C is a target cost contract with activity schedule where the out-turn financial risks are shared between the client and the contractor in an agreed proportion. Throughout the works the Contractor is reimbursed for his “Defined Costs” plus fee minus any “Disallowed Costs”.

Is NEC option A?

NEC was first published in 1993 as the New Engineering Contract. Option A is a priced contract with an activity schedule, which relates to a programme where each activity is allocated a price and interim payments are made against the completion of each activity.

Is NEC option a fixed price?

Option A is a fixed price lump sum contract and interim payments are based upon the completion of activities which are included in an Activity Schedule. There is no final account process under NEC contracts.

How does NEC Option C work?

How does NEC Option D work?

Option D provides for a target cost with a bill of quantities: A target cost introduces a mechanism that enables the contractor, and/or the consultant team, to share in the benefits of cost savings, but also to bear some of the cost when there are cost overruns. This is typically shared in a pre-agreed proportion.

What is Option B for NEC3 engineering and construction?

NEC3: Engineering and Construction Contract Option B: priced contract with bill of quantities. Our high-quality printed paperbound contract. A delivery charge will be payable. Option B is a priced contract with a bill of quantities where the risk of carrying out the work at the agreed prices being is borne by the contractor.

What does option B mean in NEC4 contract?

How many payment options are available for NEC3?

This article provides, in relation to the NEC3 Engineering and Construction Contract (ECC), an overview of the payment options, identifying the common principles, and the points to be considered under each option. The ECC provides six payment options. One must be selected for each contract:

Can a short subcontract be used on a NEC3 contract?

The short subcontract can be used as a subcontract to NEC3 Engineering and Construction Contract (ECC) and NEC3 Engineering and Construction Short Contract (ECSC).