Contract Practice

Contract Practice

1. Various Forms of Contracts

   • JCT
     • D&B
     • Standard building contract
       • with quants
       • without quants
       • with contractor design
   • NEC
     • Option A
       • priced contract with activity schedule
     • option B
       • Priced contract with bill of quants
     • option C
       • Target contract with activity schedule
     • Option D
       • Target Contract with bill of quants
     • Option E
       • Cost reimbursable
     • Opiton F
       • Managment Contract
     • Opiton G
       • Term Contract

2. What is the difference between JCT and NEC?

   • JCT
     • Continuity
     • Balance of risk
     • Comprehensive
     • Reactive risk management
     • JCT contract is fixed price lump sum
   • NEC
     • New mind set
     • Flexible
     • Simple
     • Proactive risk managment
     • NEC option B offers fixed price sum - options C & D are target cost contracts
   • JCT has PS's - NEC doesn't
   • JCT has cost scrutiny with contract sum and tender - NEC is an open book with diffined costs
   • JCT does not have programme as a contract document - NEC has the programme at heart of ethos
   • EXTENSION OF TIME/LOSS & EXPENSE
     • JCT has separate clauses for time and money
     • NEC has compensation events that deal with time and money
   • INSURANCES
     • JCT contains clause 6 and schedule 3 that deal with insurance
     • NEC is brief with insurance and is in clause 84
       • Missing insurance is existing building insurance and adjacent building insurance and included in additional insurances
   • DESIGN RISK
     • JCT has clear interaction between ER's and Contractors proposals
     • NEC has works information listing the parts of work that they are to design, a lot more detail than JCT
   • TIME
     • JCT requires a programme to be submitted
     • NEC demands detailed set of documents that make up a programme
   • COST
     • JCT splits up time and cost, dealing with them independantly at various stages after change arises
     • NEC deals with time and cost together, quotation is to be provided and agreed with the PM.

3. what constitutes a set of contract documents?

   • CONTRACT
     • Binding agreement between two parties for works to be carried out
   • CONTRACT CONDITIONS
     • define the legal rights and obligations by which each party should comply
   • SPECIAL CONTRACT CONDITIONS
   • BILL OF QUANTS OR PRICING DOCUMENT
   • DRAWINGS AND SPECS