We are producing the scope document for an NEC4 Option C contract for a highways scheme.
The Client wants to use X17 Low Performance Damages to negatively incentivise the Contractor when it comes to poor performance of the works. I understand the intent of this is to be mostly focused on quality of the works or lack thereof.
Additionally, the Client wants to use X12 Multi-Party Collaboration for a developer led portion of the scheme. There has been no indication that there is a direct contract between the Client and developer and there are many ‘unknowns’ regarding this aspect of the scheme. Is a contractual relationship a requirement to list them as a partner under X12?
In this case would it be more effective to introduce X20 KPIs in lieu of X17 and X12? Would it be beneficial to focus on incentivisation direct to the main contractor instead on involving the second party? Could we positively incentivise the contractor with KPIs that will reward good collaboration with aspects of the developer led scheme and negatively incentivise quality issues with penalties if certain KPIs are not met?