NEC Contract
In the Open Standard
Francis Moyalan, PMP,PMI-SPMember for 21 years 8 months
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Hi All,
Anyone having any knowledge about NEC-3 type of contracts,
This is presently used By a client in UAE for their upcoming massive development project,
All I know is, it is applicable for those projects in which client needs to share the risk with the vendors/contractors by making a jv with them,
Can anyone ponder more insight into this topic,
Cheers
Francis Varghese
Anyone having any knowledge about NEC-3 type of contracts,
This is presently used By a client in UAE for their upcoming massive development project,
All I know is, it is applicable for those projects in which client needs to share the risk with the vendors/contractors by making a jv with them,
Can anyone ponder more insight into this topic,
Cheers
Francis Varghese
1 reply
Oldest first- 0Oliver Melling ·Francis,
I don’t think this target price contract type is solely for the NEC3 suite of contracts.
However, a target price contract is one where a ’target’ price is agreed in the planning stage of the project.
The risk is shared between the contractor and the client by agreeing that any overpspend will be shared. I have come across a few different methods such as splitting the overspend by a percentage or making the overspend reimbursible at full rate minus profit.
HTH
Oliver
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