A few times now I have heard people suggest that cost certainty is more likely achieved by using NEC3 ECC Option A than any of the other Options. Interesting. All Option A is at the end of the day is a pricing mechanism, this one happens to be lump sum. In the highly unlikely event that no compensation events arise, the lump sum agreed is that which is paid so I suppose cost certainty has been achieved. Whether this is a lower price paid than would have been obtained using Option C is debatable however my point is these are just finer points and surely the best way for clients to achieve 'cost certainty' is to act intelligently by having a good, clear scope of works with little change thereafter (ie know what you want); sensibly avoid, reduce or mitigate as much project risk as you can; sensibly allocate the residual risk left over (of course ensuring the contract matches this); surround yourself with sensible people; make sure the 'price' is realistic; and then press the go button......
So which do you think is likely to achieve cost certainty
1. Option A?
2. Option C?
3. The intelligent client?
Rob
Showing posts with label ECC option A. Show all posts
Showing posts with label ECC option A. Show all posts
Friday, 2 December 2011
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