Contractual Procedures

Book Report/Review
Pages 3 (753 words)
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The Engineering and Construction Contact 3rd edition is a new concept for us at Duck Construction (UK) Ltd. ECC form of contract has its origins in New Engineering Contracts (NEC). The NEC was developed by the Institute of Civil Engineers (ICE) in 1993. Latham report recommended that it be applicable across the entire construction industry in 1994 and so the 2nd edition was brought out with modifications by the ICE.


Numbering of the paragraphs is done after the inserting a decimal point after the first digit as above. For example Clause 51.1 means paragraph 1 of clause 51.
Schedule of Cost Components enumerates complete list of components of cost and will not vary from one contract to another. It is left without a price. It is used to overcome uncertainty when another procedure of the contract calls for a assessment of actual costs.
JCT presumes that the work is well defined at the tender stage itself so that lump sum price can be quoted and agreed upon at this stage and that the design is done by employer's architect. They are thus fixed price contracts, periodic measurements are just an administrative tools for disbursing payments periodically.
ECC on the other hand assumes that the work at the tender stage is uncertain and they will become clear as the work progresses. Thus one lump sum price is not fixed at the tender stage, rather rates are defined but the total cost will depend upon the work actually carried out as it progresses. Hence it involves measuring the actual activities to arrive at the cost. Thus unlike JCT measurement of work and application of rates are the core of payments actually made.
ECC is a modular concept which makes is highly adaptive and flexible to ...
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