NEC Option A: Priced contract with activity schedule
Contents |
[edit] What is NEC?
NEC was first published in 1993 as the New Engineering Contract. It is a suite of construction contracts intended to promote partnering and collaboration between the contractor and client. It is now in its fourth edition, NEC4.
The Engineering and Construction Contract (ECC) is the most frequently used, and can be adopted on projects such as infrastructure, buildings, highways and process plants. It is used for the appointment of a contractor for engineering and construction work, including any level of design responsibility.
[edit] What is option A?
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 those activities. The contractor largely bears the risk of carrying out the work at the agreed prices.
The advantage of using an activity schedule is that it simplifies the administration of the interim payment process.
[edit] How are payments calculated?
The activity schedule on these types of project is submitted together with a contract programme as part of the tender.
The activity schedule is a more important document under Option A than under Option C, as it has a significant effect on the contractor’s cash flow by directly effecting the timing and payment amount.
The sum that is due to the contractor in each assessment period is defined as the total of:
- Each group of completed activities (those without defects).
- Each completed activity not in a group.
Only when the whole of an activity is complete does the payment become due to the contractor. There is no provision for part payment.
[edit] Related articles on Designing Buildings
- Activity schedule.
- Conditions of contract.
- Construction contract.
- Contract documents.
- Contractor's working schedule.
- NEC Option B: Priced contract with bill of quantities.
- NEC Option C: Target contract with activity schedule.
- NEC Option D: Target contract with bill of quantities.
- NEC Option E: Cost reimbursable contract.
- NEC Option F: Management contract.
- NEC3.
- Right to payment.
- Term contract.
Featured articles and news
Editor's broadbrush view on forms of electrical heating in context.
The pace of heating change; BSRIA market intelligence
Electric Dreams, Boiler Realities.
New President of ECA announced
Ruth Devine MBE becomes the 112th President of the Electrical Contractors Association.
New CIAT Professional Standards Competency Framework
Supercedes the 2019 Professional Standards Framework from 1 May 2025.
Difficult Sites: Architecture Against the Odds
Free exhibition at the RIBA Architecture Gallery until 31 May.
PPN 021: Payment Spot Checks in Public Sub-Contracts
Published following consultation and influence from ECA.
Designing Buildings reaches 20,000 articles
We take a look back at some of the stranger contributions.
Lessons learned from other industries.
The Buildings of the Malting Industry. Book review.
Conserving places with climate resilience in mind.
Combating burnout.
The 5 elements of seiri, seiton, seiso, seiketsu and shitsuke.
Shading for housing, a design guide
A look back at embedding a new culture of shading.
The Architectural Technology Awards
The AT Awards 2025 are open for entries!
ECA Blueprint for Electrification
The 'mosaic of interconnected challenges' and how to deliver the UK’s Transition to Clean Power.
Grenfell Tower Principal Contractor Award notice
Tower repair and maintenance contractor announced as demolition contractor.
Comments
[edit] To make a comment about this article, or to suggest changes, click 'Add a comment' above. Separate your comments from any existing comments by inserting a horizontal line.