NEC3: Engineering and Construction Contract Option A priced contract with activity schedule

Option A is a priced contract with an activity schedule where the risk of carrying out the work at the agreed prices is largely borne by the contractor. This document contains all the clauses, the shorter schedule of cost components and contract data, relevant to an option A contract.
 
OGC endorsement of NEC3;
 
Construction Clients' Board endorsement of NEC3
 
The Construction Clients' Board (formerly Public Sector Clients' Forum) recommends that public sector organisations use the NEC3 contracts when procuring construction.
 
Standardising use of this comprehensive suite of contracts should help to deliver efficiencies across the public sector and promote behaviours in line with the principles of Achieving Excellence in Construction

Contents

Schedule of options

Core clauses

• 1 General
• 2 The Contractor’s main responsibilities
• 3 Time
• 4 Testing and Defects
• 5 Payment
• 6 Compensation events
• 7 Title
• 8 Risks and insurance
• 9 Termination

Dispute resolution W

• Option W1
• Option W2

Secondary Option clauses

• X1 Price adjustment for inflation
• X2 Changes in the law
• X3 Multiple currencies
• X4 Parent company guarantee
• X5 Sectional Completion
• X6 Bonus for early Completion
• X7 Delay damages
• X12 Partnering
• X13 Performance bond
• X14 Advanced payment to the Contractor
• X15 Limitation of the Contractor’s liability for his design to reasonable skill and care
• X16 Retention
• X17 Low performance damages
• X18 Limitation of liability
• X20 Key Performance Indicators
• Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
• Z Additional conditions of contract

Note Options X8 to X11 and Y(UK)1 are not used

Shorter Schedule of Cost Components

Contract Data

Index

OGC endorsement of NEC3

OGC advises public sector procurers that the form of contract used has to be selected according to the objectives of the project, aiming to satisfy the Achieving Excellence in Construction (AEC) principles.

This edition of the NEC (NEC3) complies fully with the AEC principles. OGC recommends the use of NEC3 by public sector construction procurers on their construction projects

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