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NEC3 - Essay Example

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NEC3

As a contract administrator you have been tasked to produce a report explaining how the NEC3 Contract works and how it differs from the JCT2011 Contracts highlighting the possible implications for administering a project with the NEC3. Introduction New Engineering Contracts 3rd Edition or NEC3 is a modernistic family of contracts of contracts. It helps in implementing construction project management and supervisory principles. NEC3 synchronises the different business and engineering practices and also renders definitions for the different legal relationships and liabilities. Hence, adoption of NEC3 family of contracts culminates at an altogether cultural transformation of a construction company and its different construction project sites and subsidiaries. According to New Engineering Contract (2005), the principal feature of this cultural transformation is the complete abandonment of a hindsight dependent reactive management paradigm. NEC3 helps the construction company and its various contractors to embark on a foresight based proactive management mechanism with clearly defined contracting rules and regulations that are fair towards both the employers and the contracting agencies. NEC3 versus JCT2011 The Office of Government Commerce (OGC) has endorsed NEC3 as a family of contracts that can satisfy the contemporary Achieving Excellence in Construction (AEC) principles (New Engineering Contracts, 2005). This implies that NEC3 is compliant with the most recent government regulations laid down by the 21st century legal developments of UK. In this context, NEC3 contracts can be synchronised with the regulations such as Utilities Contracts Regulations (2006) too (Ashworth, 2011; Close, 2011). OGC has recommended the use of NEC3 family of contracts by the public sector procurers on their construction projects for the sake of authenticity and complexity issues. So it can be further deduced that NEC3 has been recommended by OGC as a compact and unitary engineering contracts mechanism. This is not the case with JCT2011. JCT contracts (as devised by the Joint Contacts Tribunal Limited, 2011a) are often put to work in conjugation with other categories of contractual agreements. Examples of such agreements are Pre-Construction Services Agreement (General Contractor) (PCSA), Pre-Construction Services Agreement (Specialist) (PCSA/SP), etc. Again, in some cases, JCT2011 contracts cannot be used with other contractual agreements. For example, in the realm of traditional procurement, a Use Measured Term Contract in JCT2011 family of contracts cannot be used along with a Framework Agreement (The Joint Contacts Tribunal Limited, 2011b). Evidently, these issues are responsible for the functional, implemental and technical difficulties with JCT2011 in the contemporary environment. Further, NEC3 provides the employer (or the main industrial procurer) with different kinds of contracts. These contracts have predefined titles that help an employer to deal with different categories of contracting authorities. NEC3 designates separate contract mechanisms for contractors, subcontractors and professional contractors with different and specific parameters. This lessens the scope of ambiguity while applying the different terms in the case of disputes. On the other hand, the Joint Industrial Tribunal (2011a) has devised standard building contracts or SBCs under JCT2011 which act ...Show more

Summary

Running Head: NEC3 and JCT2011 NEC3 and JCT2011: A Comparative Analysis University Name Subject Name Instructor Name NEC3 and JCT: A Comparative Analysis Task 1 The Client has had minimal prior knowledge about the New Engineering and Construction Contract 3rd edition (NEC3) but has never used any of the NEC3 contracts for any of their projects…
Author : yreynolds
NEC3 essay example
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