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Commercial
Management
MODULE 5HX504
WEEK 4
NEC –ECC Contracts
K.BRADLEY - Lecturer
k.bradley@derby.ac.uk
Commercial Management
FORMS OF CONTRACT - OVERVIEW
WEEK 4
Morning Session
Overview of Contracts used in the Industry
Comparison JCT 2005 & NEC Forms of Contract
The NEC –ECC Contract & Core Clauses
Compensation Events
Afternoon Session
Options A & B ( payment mechanisms)
Secondary (bolt on ) Options
Financial Risks
Roles & Responsibilities within EEC Contracts.
K.BRADLEY -
Lecturer
k.bradley@derby.ac.uk
Commercial Management -
Forms of Contracts
OVERVIEW
The wide range of Contracts means that Client’s have a wide
choice.
Forms of Contract include:
•
Joint Contracts Tribunal (JCT)
established in 1931 to produce
standard forms of contract.
•
Government Contracts (GC)
•
Engineering Contracts (such as Institute of Civil Engineers
(ICE)
•
Association of Consultant Architects (ACA) for Project
Partnering
•
New Engineering and Construction Contracts
(NEC3)
Basically all of these, the contracts set out how the interfaces
between all the organisations involved will be managed – from the
client through the designers and main contractors to all the many
sub-contractors and suppliers.
Commercial Management-
Forms of Contracts
There is now a marked rise in the use of NEC 3 contracts since
then in both building & civils construction projects which was
heavily promoted by both Latham & Egan government reports on
the industry its problems, conflict and fragmentation within.
NEC 3 is now widely used and growing internationally.
With reference to The JCT Forms of Contract & NEC 3 Forms of
Contract
More Information can be found,
on–line
& in relevant Construction
Text books such as:
Construction Planning & Control – 3
rd
edt.
–Brian
Cooke & Peter
Williams authors.
Introduction to Project Management
– Rory Burke author.
Construction Contracts(Law & Management) -3
rd
edt.
– John Murdoch
& Will Hughes authors.
# Research & also check out RICS publications & papers.
Commercial Management-
Forms of Contracts
Next we will look briefly compare two popular forms of Contract.
The JCT Forms of Contract
&
NEC 3 Forms of Contract
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