Easily Replace Option Choice from the General Contractor Agreement

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How to Replace Option Choice from the General Contractor Agreement

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the following BL TV program is brought to you by OFlaherty law please enjoy welcome to learn about law my name is Kevin o Flaherty from OFlaherty law and today were going to explain general contractor construction contracts well talk about some of the most important clauses in these contracts and some of the negotiating points and things to consider with these clauses you should be aware that at learned - about - law comm we have an article associated with this video that goes into much more detail with respect to each of these clauses and include some other clauses were not going to talk about but for the sake of brevity were gonna highlight some of the most important parts of that article so first lets talk about the scope of work clause this lays out the work that the contractor is responsible for delivering in exchange for the compensation negotiated in the contract most important thing to consider in the scope of work clause is minimizing ambiguity in order to avoid litigat

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What is payment under NEC option A?

So what is NEC Contract Option A? To put simple, this option is a priced lump sum contract. The price is then broken down into an activity schedule. Mostly used upon appointment of a contractor to carry out; infrastructure, highways, buildings process plants.

What is the difference between Option A and Option C NEC?

In the NEC ECC the main options are: Option A: Priced contract with activity schedule. Option B: Priced contract with bill of quantities. Option C: Target contract with activity schedule.

Why use NEC option C?

Option C is a target cost contract with an activity schedule where the out-turn financial risks are shared between the client and the contractor in an agreed proportion. This document contains all the core and secondary option clauses, the schedules of cost components, and contract data relevant to an option C contact.

When would you use NEC option A?

It is used for the appointment of a contractor for engineering and construction work, including any level of design responsibility.

When an existing contract is replaced with a new contract?

Novation is the replacement of one of the parties in an agreement between two parties, with the consent of all three parties involved. To novate is to replace an old obligation with a new one.

How to do a change order in a contract?

The contractor prepares a change order proposal quoting a price for the extra work. Once the owner and contractor have agreed on scope, price, and schedule, a formal, written change order is prepared and signed by all parties. Then, the contractor proceeds to perform the changed work.

What is the difference between NEC option A and B?

Compared with NEC Option A, the main difference with NEC Option B is the use of a bill of quantities similar to that of a JCT. Such a document would typically be prepared by either the Quantity Surveyor or an external cost consultant and is appended in this form of NEC Contract.

What are the different types of change orders?

Generally, there are four types of change orders. These are Time and Material, Lump Sum, Zero Cost, and Unitary Cost change orders. A lump sum change order is used when the defined change in the work scope is quantifiable, and a definite price developed.

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Replace Option Choice from the General Contractor Agreement