The New Engineering Contract

The New Engineering Contract (NEC) is a modern day family of standard contracts that truly embraces the concept of partnership and encourages employers, designers, contractors and project managers to work together to achieve the client's objectives. Priced contracts are normally only used when the Employer can provide the Contractor with a complete description of what is required at the outset, so that the Contractor can price it with a reasonable degree of certainty. An activity schedule is similar to a series of bars on a bar chart (Gantt chart). The difference is that each bar/activity has a price attached to it and the Contractor is paid for each completed activity at the assessment date following its completion.