Engineering and Construction Contract ECC – Possibly one of the Top

Engineering and construction contract ECC

Engineering and Construction Contract ECC is designed to encourage collaboration and partnership.  It also offers improvement in opportunities for teams. Partnering means working together in a way that suits team members and which suits the particular project or service being obtained.  There is no standard template for collaboration. There are, however, key factors which determine whether or not a particular procurement process is likely to result in the benefits from a true partnership.

The phrases that represent partnering are: reciprocity; openness; shared ethos; common goals; respect for each partner’s agenda; and trust. Partnering is about sharing expenses, risks and rewards.

Uniqueness of ECC

The Engineering and Construction Contract (ECC) has a unique mechanism. With it comes special project management features.  The contract includes a time limitation and a warning to other parties when aware of a matter that could increase the total costs.  Delay in completion and impairment to the performance of the works in use is also identified.

The Mega Project Project Manager must be notified by the contractor of compensation events within two weeks of becoming aware of the event. The Parties are then to set up and attend early warning meetings to discuss how these obstructions can be avoided or reduced.

If a decision is made that action is necessary, the Project Manager decides, usually within one week, if the matter entitles the contractor to be compensated for the effect on prices and the completion date (compensation event). If this is the case then the contractor is to provide alternative quotations within three weeks.  The Project Manager has two weeks after to reply. Hopefully this averts a roadblock and the building process can continue.

If not and a dispute arises from the above mentioned process, it is then submitted to and settled by an adjudicator. Disputes may be submitted to an adjudicator not more than eight weeks after the party becomes aware of the action that triggers a dispute. The adjudicator provides his decision within eight weeks of receiving the first submission.

Effective Control

Therefore the Engineering and Construction Contract (ECC) provides effective control of change, speedy agreement of time, quality and cost.  There are, however, some caveats associated with the use of the EEC including organisational culture change and top managerial commitment. Training needs and increased documentation and administration may require more staffing. Self-governance needs to be relied on.  The understanding of early warning processes needs to be integrated.

The operation and management of the processes can certainly be supported with Information technology.  This would help the creation and storage of communications, notices and knowledge management.

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