If you`re in the construction industry, chances are you`ve come across the NEC contract – the New Engineering Contract. The NEC is a suite of contracts that are used mainly for engineering and construction projects in the UK. There are various options within the NEC, and in this article, we will be taking a closer look at Option B.
What is NEC Option B?
NEC Option B is one of the six main options in the NEC suite of contracts. It`s also known as the “priced contract with bill of quantities” option. In Option B, the contractor is responsible for providing a price for the defined work, which is identified in the contract via a bill of quantities.
The bill of quantities breaks down the work into different items and assigns a quantity to each item. The contractor then provides a price for each item. The total of all the prices for each item gives the total price for the defined work.
What are the features of NEC Option B?
NEC Option B is a collaborative contract that promotes teamwork and cooperation between the contractor and the client. It`s built on the principles of mutual trust and respect and encourages transparency and open communication throughout the project.
One of the features of NEC Option B is that the contractor is incentivized to complete the project on time and within budget. The contractor is paid based on the actual costs incurred, plus a fee for profit and overheads.
Another feature of Option B is that it places a significant emphasis on risk management. The contractor is required to identify and manage all the risks associated with the project, and they are accountable for any unforeseen costs.
Why choose NEC Option B for your project?
If you`re considering using NEC Option B for your construction project, there are several reasons why it might be a good fit for you.
Firstly, NEC Option B is a flexible contract that can be used for a wide range of projects. It`s suitable for both small and large-scale projects and can be used for civil engineering, building, and plant and equipment projects.
Secondly, NEC Option B is designed to encourage collaboration and teamwork. It`s a contract that places an emphasis on communication, which can lead to a more efficient and successful project outcome.
Finally, NEC Option B is transparent and promotes fairness. The contractor is incentivized to complete the project on time and within budget, and any changes to the scope are managed in a fair and transparent way.
In conclusion, NEC Option B is a popular contract option that is used extensively in the construction industry in the UK. It`s a flexible and collaborative contract that promotes transparency, teamwork, and risk management. If you`re considering using NEC Option B for your next project, it`s important to understand its features and benefits to make an informed decision.