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Abstract

This research project examines the NEC Option E Cost-Reimbursable contract and its effectiveness at providing and encouraging the collaborative platform that is a focal point of the culture of NEC and its design.
The research conducted involved a combination of primary and secondary sources being utilised, which were a literature review and questionnaire that was distributed to participants representing a variety of industry professions.
The research findings highlighted that industry opinion was very much divided on the effectiveness of this type of contract in cultivating a collaborative environment for both client and contractor. This was due to a number of issues revolving around the design and mechanisms of the contract, primarily belief in a lack of guidance on cost substantiation processes and the disproportionate weighing of risk between parties; the client being responsible for most of the risk in this case. Participants also highlighted that alongside the contractual difficulties, there are wider issues within the industry whereby the workforce must do more to educate professionals on how the contract should be administered as this would benefit one another and help build a platform of collaboration.
The conclusions drawn are that whilst concerns remain over how the contract works in terms of risk allocation, it is a vital contract option for types of work such as emergency works or projects without a fully defined scope as it provides flexibility which is imperative to the success of such projects. In addition to these findings, it is evident that more must be done to provide education and training to those who use this type of contract and that they are made aware of the mechanisms and tools available to them as this would help address issues of collaboration and efficiency.

Course: Quantity Surveying - MSc - C2170

Date Deposited: 2020-12-17

URI/permalink: https://library.port.ac.uk/dissert/dis13647.html