NEC Option E: Cost reimbursable contract
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 E is a cost reimbursable contract in which the contractor is reimbursed the actual costs they incur in carrying out the works, plus an additional fee. The financial risk involved is largely taken by the client.
A cost reimbursable contract might be used where the nature or scope of the work to be carried out cannot be properly defined at the outset, and the risks associated with the works are high, such as, emergency work (for example, urgent alteration or repair work, or if there has been a building failure or a fire requiring immediate reconstruction or replacement of a building so that the client can continue to operate their business).
Option E contains the core clauses, secondary option clauses, schedules of cost components, contract data, and so on.
[edit] Related articles on Designing Buildings Wiki
- Conditions of contract.
- Construction contract.
- Contract documents.
- Cost reimbursable contract.
- Defined cost.
- 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 F: Management contract.
- NEC3.
- Prime cost contract.
- Term contract.
Featured articles and news
Definition of Statutory in workplace and facilities management
Established by IWFM, BESA, CIBSE and BSRIA.
The general election and the construction industry
As PM, Rishi Sunak announces July 4 date for an election.
Tackling the lack of knowledge or confidence in heat pumps
The CICV Green Home Festival part of the Edinburgh Fringe.
Home improvements swapped for green energy upgrades
As applications down since and desire to reduce bills up.
Eco apprenticeships continue help grow green workforce
A year after being recognised at the King's coronation.
The Use of Natural Insulation Materials in Retrofit
New paper from STBA with support from SDF.
National Retrofit Hub in partnership with InstallerSHOW.
Permitted development rights for agricultural buildings
The changes coming into effect as of May 21, 2024.
Biodiversity and the built environment digital series
The nature of building, with CIOB and CWP.
A call for prevention and sensitive re-use.
Risks to the long-term effectiveness of the BNG scheme
National Audit Office publish review of Biodiversity Net Gain.
The CIAT principal designer register
Providing assurance and verification of the capability and competence of registered ATs.
Building Safety recommendations and Northern Ireland
The NI roadmap to improving safety in high rise residential.
Specifying rendered external wall insulation for fire safety
How to interrogate the evidence provided to the specifier.
The benefits of writing articles for your organisation
How to create a profile for your organisation and publish for free.
Scottish Government action to reach net-zero targets
Retrofit expert group highlight critical actions needed.
A forward thinking, inclusive global community of members.