NEC4 Option C secondary options advice please


Could I have some advice please?

I’m working as an assistant PM for a Client who is looking to build a large office. This project has a complex supply chain with the possibility of a number of subcontractors in the construction phase and various innovative ideas, some new to the designers. The project also has a strict time constraint.

What secondary options should I use for option C which would be best for the client?

Initially I was thinking X1, X5, X6, X7, X13, X20, X21, X22

Appreciate any help.

Thank you

There isn’t a standard response to your question as it would depend upon a number of different factors, including allocation of risk, although comments as follows;

X1 is pretty much standard in today’s economic climate,
X2 is also often included as a ‘risk allocation’ assessment,
X5 depends on required construction strategy as it is usually more expensive to deliver a project this way,
Nice to see X6,
X7 appropriate if time is critical but consider how the option is applied (delay damages ‘holiday’ etc).
What about X8 as there are several important parties involved,
Also X9 to deal with any IPR issues with the ‘innovative ideas’,
Depending upon the approach and participants you could consider X12, but that would require ‘strong’ management experience from the Client,
X13 is often included as a standard X Option along with X4 but not really necessary to include both. Think about what a bond would be required for and consider all ‘contract assurance’ issues, including a retention bond under X16,
To assist with delivery of a ‘strict time constraint’ perhaps consider X14 to facilitate mobilisation etc
If there is any design responsibility then X15 should be included as standard,
X18 should be a ‘standard’ inclusion,
If X12 is used then NEC suggest that X20 is not used but as the KPIs are applied in a different way then it is possible to include both and may be appropriate depending upon your approach,
X21 is good but would require an ‘agreed’ comprehensive methodology to evaluate any such proposals to eliminate any dispute as to the effects of a proposal,
Depending upon what stage you are currently at then X22 may be of benefit but again requires ‘strong’ management experience from the Client to administer sensibly.

Remember to expressly state the required options in Contract Data and also include appropriate information in both Contract Data and the Scope (where required) to facilitate the effective operation of the procedures.

Hi Andrew_W-I

Thank you for taking the time to reply explaining and adding additional X clauses. Your response has been very helpful and is greatly appreciated.

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