NEC Option D: Target contract with bill of quantities
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 parties to a construction contract.
The Engineering and Construction Contract (ECC) is the most frequently used, and can be adopted on projects involving the construction of infrastructure or buildings. It is used for the appointment of a contractor for engineering and construction work, including any level of design responsibility.
It allows for 6 options:
- NEC Option A: Priced contract with activity 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.
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. For more information see: Target cost contract.
- A bill of quantities is a document prepared by the cost consultant (often a quantity surveyor) that provides project specific measured quantities of the items of work identified by the drawings and specifications in the tender documentation. A bill of quantities can be prepared when the design is complete. For more information see: Bill of Quantities.
Option D includes core and secondary option clauses, the schedules of cost components, and contract data.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
- Bill of quantities.
- Conditions of contract.
- Construction contract.
- Contract documents.
- NEC Option A: Priced contract with activity schedule.
- NEC Option B: Priced contract with bill of quantities.
- NEC Option C: Target contract with activity schedule.
- NEC Option E: Cost reimbursable contract.
- NEC Option F: Management contract.
- NEC3.
- NEC4.
- Target contract.
- Target cost.
- Term contract.
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