Wednesday, February 26, 2020

Major differences between NEC3 & JCT SBC 2011 Coursework

Major differences between NEC3 & JCT SBC 2011 - Coursework Example The provisional sum for the JCT SBC 2011 contract is not mandatory like the case of NEC3 contract. The project manager is usually at pains to decide whether to adopt the discrepancies manifest in cost estimation for a project. The variations negate the principle of cost control in NEC3 contracts. The variations also compromise the control of overall project cost. Moreover, the costs associated with compensation events are separate from the initial tender price. 3.  Cost scrutiny The cost scrutiny should be made mandatory for both contracts because this allows easy cost evaluation. The large number of firms usually involved in a single mega construction contract requires long-supply chains. This implies that the identification of the costs involved is hectic. Consequently, cost accounting for the project takes a long time. The administration of cost pertaining to the company system increases the overall contract price. Adjudication of the contract cases is mandatory.4.  Ground ris kThe ground risk for the JCT SBC 2011 is higher than in the case of NEC3 contract. Caution should be taken with regard to the productivity and improvement in performance of the contract projects. Project management should be emphasized in the application of NEC3 contract.In both cases, a comprehensive program must be prepared prior to the start of the project. The contract should focus on the contingence events rather than the past. Programming for the contract is essential. The complexity of the project task must also be highlighted.

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