Nec4: Engineering and Construction Contract Option D: Target Contract with Bill of Quantities

The book "NEC4: Engineering and Construction Contract Option D: Target Contract with Bill of Quantities" by NEC is a comprehensive guide to the NEC4 Engineering and Construction Contract (ECC) Option D. Here is a detailed overview:

Key Themes

1. Target Cost Contract: The book focuses on Option D of the NEC4 ECC, which is a target cost main works contract with a bill of quantities. This type of contract is ideal for complex or larger projects where the client and contractor are willing to share project financial risk in a fully collaborative way.

2. Collaborative Approach: The NEC4 ECC emphasizes a collaborative approach between the client and contractor. 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.

3. Risk Sharing: The target cost contract with a bill of quantities allows for the sharing of out-turn financial risks between the client and the contractor in an agreed proportion. This directly incentivizes both parties to look for cost savings throughout the works.

4. Payment Structure: The contractor prices the quantities specified in the client’s bill of quantities based on actual cost plus a fee, resulting in a target price. The client makes interim payments based on the quantity of work done at each assessment date, and differences from the target price are shared according to an agreed pain/gain share proportion.

5. Compensation Events: The book covers the compensation event process, which is a fast and fair method to handle changes that affect time, cost, or quality. This ensures that there are no surprises at completion and maintains transparency and fairness to both parties.

6. Contract Data and Schedules: The document includes all core and secondary option clauses, schedules of cost components, and contract data relevant to an Option D contract. This provides everything needed to prepare, tender, and manage an NEC4 ECC Option D contract.

Plot Summary

The book does not have a narrative plot but rather serves as a guide and reference manual for professionals involved in engineering and construction projects. It outlines the key components and processes of the NEC4 ECC Option D, including payment structures, risk sharing mechanisms, and compensation event procedures.

Critical Reception

Given its technical nature, there is no general critical reception available for the book. However, the NEC4 suite of contracts is widely recognized for its collaborative and flexible approach to project management, which has contributed to its global success in delivering projects on time, on budget, and to high environmental and quality standards.

Practical Use

The book is designed for practical use by professionals in the construction industry. It provides detailed information on how to prepare, tender, and manage an NEC4 ECC Option D contract. The inclusion of all relevant secondary options and forms for cost schedules and contract data makes it a comprehensive resource for both new and experienced users.

Availability

The book is available in paperback format with the ISBN 9780727763143. It can be purchased from various sources, including construction bookstores and online retailers.