NEC4: Engineering and Construction Contract
The NEC4 Engineering and Construction Contract (ECC) is the main works contract in the NEC4 suite of collaborative, flexible and clearly written contracts for built environment procurement.
The ECC can include any level of design. It has six main payment Options: A (priced contract with activity schedule), B (priced contract with bill of quantities), C (target contract with activity schedule), D (target contract with bill of quantities), E (cost reimbursable contract) and F (management contract).
As such, the contract can be used for the full range of financial risk allocation, from placing most risk with the contractor (options A and B), to risk sharing (options C and D) and placing most risk with the client (options E and F). Each ECC Option can be purchased separately if required.
In addition to the main Options, the document contains everything you need to prepare, tender and manage an NEC4 ECC contract, including all secondary Options and forms for the relevant cost schedules and contract data.
Background
The NEC4 ECC has a global track record for delivering all kinds and sizes of building and infrastructure projects on time, on budget and to the highest environmental and quality standards.
As with all NEC4 contracts, the parties are required to act in a ‘spirit of mutual trust and co-operation’ and give early warnings of anything that could affect time, cost or quality so it can be mitigated without delay. Change is dealt with by a fast and fair compensation event process which, together with a continually updated and agreed programme, ensures there are no surprises at completion.
Core Clauses
- General
- The Contractor’s main responsibilities
- Time
- Quality management
- Payment
- Compensation events
- Title
- Liabilities and insurance
- Termination
Main Option Clauses
- 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
Resolving and Avoiding Disputes
- Option W1
- Option W2
- Option W3
Secondary Option Clauses
- Option X1: Price adjustment for inflation (used only with Options A, B, C and D)
- Option X2: Changes in the law
- Option X3: Multiple currencies (used only with Options A and B)
- Option X4: Ultimate holding company guarantee
- Option X5: Sectional Completion
- Option X6: Bonus for early Completion
- Option X7: Delay damages
- Option X8: Undertakings to the Client or Others
- Option X9: Transfer of rights
- Option X10: Information modelling
- Option X11: Termination by the Client
- Option X12: Multiparty collaboration (not used with Option X20)
- Option X13: Performance bond
- Option X14: Advanced payment to the Contractor 59
- Option X15: The Contractor’s design
- Option X16: Retention (not used with Option F)
- Option X17: Low performance damages
- Option X18: Limitation of liability
- Option X20: Key Performance Indicators (not used with Option X12)
- Option X21: Whole life cost
- Option X22: Early Contractor involvement (used only with Options C and E)
- Option X29: Climate Change
Option X19 is not used.
- Option Y(UK)1: Project Bank Account
- Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
- Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999
- Option Z: Additional conditions of contract
- Schedule of Cost Components
- Short Schedule of Cost Components
- Contract Data
- Part one – Data provided by the Client
- Part two – Data provided by the Contractor
- Index
NEC4 Y Clauses - May 2024
Y Singapore Clauses
NEC4 Y Clauses - February 2023
Y Northern Ireland Clauses
NEC4 Y Clauses - February 2021
NEC is supporting the use of its contracts in Australia and Ireland by publishing secondary option Y clauses.
Y Australia Clauses - Y(Aus) Clauses
- NEC4 Y(Aus) - Engineering and Construction Contract
- NEC4 Y(Aus) - Flowcharts for all contracts
- Download all the Y Australia Clauses
Y Ireland Clauses - Y(Ire) Clauses
Users should note that the NEC Forms of Contract are protected by copyright and may not be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical or photocopying, recording or otherwise, without the prior permission of the copyright owner. However, Contract Data forms may be reproduced for the purpose of obtaining tenders, awarding and administering contracts.
Likewise, plagiarising any copyrighted document is illegal. For users seeking to prepare their own bespoke contracts based on the NEC Forms of Contract, please contact NEC at info@neccontract.com to discuss and obtain a copyright licence.
Paperbound
Product code: L48002-H
ISBN:
9780727762092
ePrint
Product code: L48002-P
ISBN:
9780727762474
eView
Product code: L48002-V
ISBN:
9780727762474