To Be, or Not to NEC: Part 3 – the Core Clauses of the NEC Contract

In the first part of our series, we looked at the use of the NEC contract in Australia and in part 2, we explored the arrangement of the contract. In the final part of our series, we examine in more detail the most unique aspects of some of the core clauses, and how they differentiate the NEC from more traditional forms of contract.

The Core Clauses

To re-cap, the fundamental differences between other more traditional forms of contract and the NEC can be found in the core clauses, which are common to all six main Options (part 2 of this series refers to each main Option). Some of the main Options do, however, add to the core clauses, rather than alter or delete them. Within the third edition of the NEC (“NEC3”) the core clauses are arranged in nine sections comprising:

General
The Contractor’s main responsibilities
Time
Testing and Defects
Payment
Compensation
Title
Risks and insurance
Termination

Whilst the provisions associated with each core clause are too numerous to discuss in this paper, it is sections 1 (General), 3 (Time) and 6 (Compensation) that are considered most unique.