Contractual Procedures - Book Report/Review Example

Numbering of the paragraphs is done after the inserting a decimal point after the first digit as above. For example Clause 51.1 means paragraph 1 of clause 51. Schedule of Cost Components enumerates complete list of components of cost and will not vary from one contract to another. It is left without a price. It is used to overcome uncertainty when another procedure of the contract calls for a assessment of actual costs. JCT presumes that the work is well defined at the tender stage itself so that lump sum price can be quoted and agreed upon at this stage and that the design is done by employer's architect.

They are thus fixed price contracts, periodic measurements are just an administrative tools for disbursing payments periodically. ECC on the other hand assumes that the work at the tender stage is uncertain and they will become clear as the work progresses. Thus one lump sum price is not fixed at the tender stage, rather rates are defined but the total cost will depend upon the work actually carried out as it progresses. Hence it involves measuring the actual activities to arrive at the cost.

Thus unlike JCT measurement of work and application of rates are the core of payments actually made. ECC is a modular concept which makes is highly adaptive and flexible to all kinds of pricing and measurement bases. Its successful implementation depends upon the willingness and understanding of this concept by all the parties. ECC form has common language which is unambiguous and user friendly. They can be easily translated into foreign languages. JCT contracts are still burdened under heavy legal framework is used more as a deterrent to dissenting parties rather than to bring them close to negotiation.

ECC in contrast to JCT needs a lot of care at the works information preparation stage which if done well would result in rapid programme implantation and its change management. ECC contract philosophy is fundamentally different from JCT wherein programme management and change management during the implementation of the contract are well defined and