NEC contracts—price and payment


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Construction expert
Practice notes

NEC contracts—price and payment


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Construction expert

Practice notes
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This Practice Note looks at how payments are made and how the contract price is calculated under the NEC Engineering and Construction Contract (ECC). It provides an overview of how each of the main pricing Options operate, how the price for the works is calculated and how the risk of increased Costs are shared between the parties. For information on payment under construction contracts more generally, see Practice Notes: Interim payments in construction contracts, Interim payments in construction contracts and The Final account in construction and engineering contracts.

This Practice Note covers both the NEC3 and NEC4 editions of the ECC. For consistency, the term ‘Client’ is used throughout this Practice Note as this is the term used for the developer/employer in the NEC4 contracts (the NEC3 ECC uses the term ‘Employer’). The term ‘Scope’ is used throughout this Practice Note as per the NEC4 ECC to describe the document which specifies and describes the works which the Contractor is to carry out (in the NEC3 ECC the term ‘Works information’ is used). For a glossary of NEC terms,

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Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Options definition
What does Options mean?

The right, but not the obligation, to buy or sell a fixed quantity of a commodity, currency or security at a fixed price, on or until a particular date.

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