Design of an NEC4 ECC contract by selecting Z clauses along with contract features

Chipco Supermarket

Table of Contents
INTRODUCTION...........................................................................................................................1
Design of an NEC4 ECC contract by selecting Z clauses along with contract features..............1
Comparison that how payments are managed between NEC4 ECC contracts and FIDIC
contracts.......................................................................................................................................3
Comparison of dispute resolution methods between NEC4 ECC contracts and FIDIC 2017.....5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
A contract can be defined as an agreement that give rise to obligations which are
recognized by law. Three essential and requirements in creation of a contract such as agreement,
consideration and intention (Gerrard and Kings, 2018). This study is going to show some basic
principles of contract which need to be followed by any type of organization and industry. It
shows all elements, types, validity and other basic things of a contract. This study will also show
the importance and features of NEC4 Engineers construction contract which allows and help
people to solve problems and conflicts and manage activities in an efficient manner. There is a
difference between NEC4 ECC contracts and FIDIC contracts in the context of ways of
managing disputing resolution as well as payment methods.
Design of an NEC4 ECC contract by selecting Z clauses along with contract features
NEC4 engineering construction contract is a contract which is being developed to allow
and help organizations to inspire and enable project collaboration across the United Kingdom
and internationally. Cheapco supermarket wants to convert around 25 Food-co stores to Cheapco
stores and expand its stores and business across the UK within 5 years. It also wants to renovate
its existing stores and also develop new stores. For accomplishing these goals and objectives
there is a requirement for the manager of this supermarket is to follow NEC4 contract because it
is mainly designed and developed to help businessman to innovate their businesses via digital
advances. It also delivers real project value to people and also make able to best practices in
procurement. The main aim of this contract is to make able disciplines across a flexible industry
to manage as well as deliver truly collaborative projects (Lupton, 2019). There are several
options in NEC4 in which option A which is known as a priced contract with an activity
schedule. According to this option, each of the activity is allocated a price as well as interim
payment that is made against the completion of each activity. Option B is known as price
contract with bill of quantities. It is known as suit of construction contract whose intention and
aim is to enhance collaboration between the client and the contractor. NEC4 ECC option C is a
target cost contract with activity schedule in which financial related risks are being shared
between the contractor and the client in agreed terms. NEC4 option D is a target contract with
bill of quantities. It is also a suit of contracts whose main aim is to promote partnering between
parties. NEC4 option E is known as a cost reimbursable contract whos intention is same as like
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