Construction contract Assignment Example | Topics and Well Written Essays - 1500 words

Construction contract - Assignment Example Engineers are opting for NEC because it is more flexible and can suit the whole construction industry. It is also highly adaptable, provides a range of options for risk allocation. Compared to other construction contract forms, it is the simplest using understandable language where the roots of many disputes have been left out. The use of flow charts also makes it more clear and easy to use. In this paper, the core clauses of NEC and FIDIC are compared with particular emphasis to the core risks and insurance. NEC assigns risks cover according to contemporary principles. Nevertheless unlike FICID, it defines the contractors’ risks in reference to those risks not listed under the employers’ risks. Under NEC conditions, the responsibility of care of the contractor goes beyond the completion of a contract. In the clause 80.1of NEC 3, the employers risks are articulated. They are categorized into six broad groups which include: one, risks involving the site or works and the legal and general liabilities and defaults that may arise from his design. In cases of risks that may crop up from the employer design fault can be insured against through a professional indemnity policy. If it is the employer own design or covered by NEC professional service contract where an outside contractor is involved. In dealing with unexpected situation, NEC has a range of provisions offering compensation for the events or occurrences that are at the employer’s risk. This goes a long way in assisting the project manager and contractor to man the construction projects without being obscured by these events. In the sub-clause 60.1 provision for variations are made where the contractor may request for extension of time for completion and even addition of payment. In such cases, the contractor only articulates his desire for time extension or rising of payment in a quotation. In sub-clause 61.6, affirms that in instances where the results of compensation of an event are