Essay Comparing key construction contracts Assignment Sample
Comparing key construction contracts (JCT 2016 SBC/Q and NEC4 ECC)
Introduction
This essay aims to provide a better understanding of building contracts used in the construction industry, such as NEC4 and JCT SBC/Q16. NEC and JCT are both considered to be standard types of contracts and are integral parts of the standard contract family for acquiring works. A comparison of various aspects and conditions related to payment in NEC4 ECC contracts and JCT SBC/Q16 contracts is the focus of the essay. We also compare NEC4 ECC contracts with JCT SBC/Q16 dispute resolution methods. A comparison of project programming conditions in the construction sector will also be included in the report
Comparison of conditions guiding payment
A delay in payment can affect the completion of the project if it is not completed on time. Payment is an essential part of the construction process. Compared with NEC4 ECC contracts and JCT SBC/Q16, there is a huge difference in the payment system. When it comes to NEC4 ECC, it is essential that contractors are familiar with all the rules and regulations governing the contract and the construction act, as well as to supply all the necessary documentation. It is the contractor who is responsible for providing the total payment amount. The contractor should submit all relevant information, including information regarding the services for which money is being requested, if he wishes for his payment request to be treated as a “default payment notification” under the Construction Act.
Contrary to this, the JCT 2016 contracts include the dates relevant to the payment method, as defined by the Construction Act, and limit their application to this method. Dates on which payments are due, payments are issued, payments are applied and payments are fulfilled are included in this list. The JCT 2016 contracts also include an interim value date. Missing any payment deadline will stymie work progress and cash flow in the building supply chain. By implementing JCT contracts, standardized payment methods will be made available. The system will plan according to the payment method.
Comparison of conditions guiding project programming
According to research, project management and guidance play an essential role in the construction sector. Nevertheless, they are categorized according to the type of contract. A Contract Administrator (CA) manages the entire JCT contract primarily on behalf of the owner. The objective of being impartial among parties involved in JCT Contracts has been observed to be systematic during the contracting process. Meanwhile, with NEC, it is the Project Manager (PM) who is in charge of contract management
It has also been noted that regulatory, balancing, and administrating risk factors among involved parties may be included in the NEC program requirements. The main objective of the NEC Contract can be a time consuming process. Additionally, it has been determined that regular updating of the program is necessary.
In contrast, JCT gives more importance to its programs, and has to fulfill certain requirements, such as regularly submitting updated programs for approval. Moreover, JCT focuses primarily on submitting a master’s programme on time. It has been determined that NEC’s can be viewed as more proactive strategies that improve project delivery and program management
Comparison of dispute resolution methods
By working with the parties, NEC4 continuously strives to enhance their collaboration and understanding. Civil construction and international infrastructure projects employ contract and party flexibility as well. Generally, W1 is the general option, while W2 is for contracts in the United Kingdom. Most of the clauses in both options are the same. There is no time limit on who can refer issues to adjudication in W2, whereas W1 contains a table detailing who can refer issues to adjudication within certain time frames. NEC3 ECC assumes rather than expressly states non-adversarial dispute resolution mechanisms. There is no need for a third party to administer a series of events between a customer and a contractor.
As a result, all possible disagreements of referral and standing are settled by a tribunal. It is the primary goal of the Dispute Avoidance Board to resolve possible disputes. The goal is to prevent problems before they arise. Site visits are also conducted by the Dispute Resolution Board. It is necessary to examine the progress and issues that may arise on certain days. In the event of a dispute, contracts might be harmed
JCT, on the other hand, has a set of four steps that comprise negotiation, mediation, adjudication, and litigation. The term negotiation refers to the process of parties meeting to settle their differences before pursuing formal legal actions. In addition, mediation in this method is characterized by both parties bringing a mediator who assists them in resolving their disagreements and adjusting the situation in accordance with the contract. Next, there is adjudication, which is the process of finding a solution that meets the needs of both parties and bringing them to a settlement. Finally, litigation refers to situations where the parties disagree with the decision and seek redress through litigation in accordance with their contract
Conclusion
In light of the foregoing, we can conclude that the procurement and contract processes are the most necessary elements of the building process. Many aspects of the construction contract were compared. In this essay, I sought to make a thorough, objective comparison between NEC4 and JCT SBC/Q16. The research included several components that contribute to a better image analysis, comparing payment circumstances, for instance, guidelines for project programming, and dispute resolution strategies
References
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