To Be, or Not to NEC: Part 3 – the Core Clauses of the NEC Contract
March 22, 2019
To Be, or Not to NEC: Part 3 – the Core Clauses of the NEC ContractDownload Article
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:
- The Contractor’s main responsibilities
- Testing and Defects
- Risks and insurance
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.