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NEC ECC: What are examples of appropriate Z clauses for a specific project?

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A project will act as the focal point for the council's community-based outreach activities and continuous professional development courses - what Z clauses should we include. Also, what secondary options would be appropriate to add for an option C contract.
asked Nov 29, 2018 in Z clauses by Rochelle (140 points)  

1 Answer

+1 vote
Very hard to say what Z clauses you need for any project. NEC has tried to write a good set of rules that should not need too many amendments, but you just need to look at what specifics your type of industry or your type of project bring that you need to subtly change/enhance the rules for.

In terms of secondary options you need to think who you want to take risk of certain items - understanding that sometimes it is more cost effective to retain certain risk if you feel the Contractor may price it higher than it is likely to cost. Difficulty to predict but it depends on attitude of client in terms of which is more important - cost certainty or value. For example:
X1 - if you want Client to include risk of inflation increases then include this
X2 - if you want the Contractor to take risk of any changes in law (big risk currently) then DONT include this, but then expect higher prices or possible no bid!
X4orX13 - choice of protection in event of Contractor going insolvent
X5 - option to include sectional completions to commit handover of sections of work
X6 - option to pay Contractor bonus for finishing early - if there is a financial benefit for the Client
X7 - define damages, otherwise legally they will be at large (rather than none)
X15 - if not included Contractor liability for design is "fit for purpose" which they may well not be insured for
X18 - if not included then it would mean unlimited liability for Contractor - again probably un-insurable for them
X20 - option to include KPI's to incentivise any type of performance measure
answered Nov 29, 2018 by Glenn Hide Panel Members (74,800 points)