NEC3: Engineering and Construction Contract (ECC)

NEC3: Engineering and Construction Contract (ECC)

Stock status: Available to Order (Stock Due)

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Publication Details

Publication date: 01/04/2013

Publisher: Thomas Telford

ISBN: 9780727758651

Publication Status: Active

Publication Description

NEC3 Engineering and Construction Contract is the core document from which the options A-F are extracted.  It contains all core clauses and secondary option clauses, together with the schedules of cost components and forms for contract data.
OGC endorsement of NEC3;
Construction Clients' Board endorsement of NEC3
The Construction Clients' Board (formerly Public Sector Clients' Forum) recommends that public sector organisations use the NEC3 contracts when procuring construction.
Standardising use of this comprehensive suite of contracts should help to deliver efficiencies across the public sector and promote behaviours in line with the principles of Achieving Excellence in Construction.


Core clauses

• 1    General
• 2    The Contractor’s main responsibilities
• 3    Time
• 4    Testing and Defects
• 5    Payment
• 6    Compensation events
• 7    Title
• 8    Risks and insurance
• 9    Termination

Main option clauses

• A    Priced contract with activity schedule
• B    Priced contract with bill of quantities
• C    Target contract with activity schedule
• D    Target contract with bill of quantities
• E    Cost reimbursable contract
• F     Management contract

Dispute resolution

• Option W1
• Option W2

Secondary option clauses

• X1    Price adjustment for inflation
• X2    Changes in the law
• X3    Multiple currencies
• X4    Parent company guarantee
• X5    Sectional Completion
• X6    Bonus for early Completion
• X7    Delay damages
• X12  Partnering
• X13  Performance bond
• X14  Advanced payment to the Contractor
• X15  Limitation of the Contractor’s liability for his design to reasonable skill and care
• X16  Retention
• X17  Low performance damages
• X18  Limitation of liability
• Y(UK)2 The Housing Grants, Construction and Regeneration Act 1996
• Y(UK)3 The Contracts (Rights of Third Parties) Act 1999
• Z Additional conditions of contract 
Note: Options X8 to X11 and Y(UK)1 are not used
Schedule of Cost Components
Shorter Schedule of Cost Components
Contract Data

OGC endorsement of NEC3

OGC advises public sector procurers that the form of contract used has to be selected according to the objectives of the project, aiming to satisfy the Achieving Excellence in Construction (AEC) principles.

This edition of the NEC (NEC3) complies fully with the AEC principles. OGC recommends the use of NEC3 by public sector construction procurers on their construction projects.

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