Option E is a cost reinbursable type contract where the financial risk is taken largely by the client. It is ideal for early stage work on a project or refurbishment work where the full scope of work is not known by when a contractor is required to start work on site. The contractor is paid Defined Cost uplifted by a tendered fee percentage for all work done. Constant forecasting of the outturn cost keeps the Parties aware of the financial situation.
This document is the ECC3 black book with the other main Options A to D & F deleted and the Option E clauses merged into the core clauses in their appropriate place. It is useful to persons only ever likely to require an Option E type of contract.
The SA National Treasury Standard for Infrastructure Procurement and Delivery Management has, with the exception of the NEC3 Framework Contract (a head contract), endorsed the NEC3 family of contracts for use by organs of state in South Africa to serve their infrastructure needs.
The NEC3 family of contracts support a wide range of procurement strategies which can lead to improved project outcomes and in so doing realise value for money.
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