NEC option C and D


Overview
The purpose of this standard is to provide learners with a brief understanding of Option C and D under the NEC Engineering and Construction target contracts.

Duration

Minimum 3 learning hours

Purpose/scope

The purpose of this standard is to provide learners with a brief understanding of Option C and D under the NEC Engineering and Construction target contracts.

The scope of this standard covers:

  • target contracts
  • pain and gain allocation
  • risks in setting pain and gain shares
  • effects of compensation events on pain and gain
  • key differences in target contracts between the different types and versions of NEC Engineering and Construction Contracts

Occupational relevance

Training delivered against this standard would be relevant to the following occupational group(s):

  • developers, contract administrators, sub-contractors
  • commercial managers, quantity surveyors, management and leadership

Candidate pre-requisites

There are no candidate pre-requisites as part of this standard. However an understanding of NEC Engineering and Construction Contract terminology and procedures would be beneficial and it is advised that the NEC contract introduction course is taken in advance.

Instruction/supervision

As a minimum, course instructors must be able to demonstrate that, in relation to this standard, they have:

  • a train the trainer or instructional techniques course certificate
  • successfully completed training to this standard 
  • at least 2 years relevant industrial experience
  • a verifiable CV.

Delivery

Delivery may be in an on or off the job environment.

All materials and equipment must be of a suitable quality and quantity for candidates to achieve learning outcomes, and must comply with relevant legislation.

The class size and candidate/instructor ratio must allow training to be delivered in a safe manner and enable candidates to achieve the learning outcomes.

The following delivery methods may be used in the delivery of this standard:

  • classroom
  • a blend of classroom and e-learning

This standard is considered to contain 51% or more theoretical learning.

This standard is considered to be set at an intermediate level.

Assessment

For the successful completion of training, candidates must complete an end of course practical assessment or knowledge test that measures the learning outcomes and has a pass or fail criteria.

Quality assurance

Quality assurance against this standard will require initial approval of the training organisation and their content mapped to the standard. 

CITB will also conduct an approval intervention, either desk-based or centre visit, to ensure the training organisation can meet the requirements of the training standard. 

Approved training organisations (ATOs) will be required to present information on records of training and assessment upon request to CITB for desk-based analysis. They will also be visited annually by the CITB quality assurance team.

Renewal/refresher

There are no mandatory renewal or recommended refreshment requirements for this standard.

Approval date

To be confirmed

Review cycle

Either on request or in 5 years from approval date.

Learning outcomes

The candidate will be able to: 
Additional guidance to support learning outcome
describe target contracts under NEC
describe target contracts under NECexplain the main  requirements of options C and D

describe the procedure in allocating pain and gain under NEC target contracts
  • open book costings and making sure that smaller contractors’ and sub-contractors’ job costing systems are fully compliant with NEC requirements
describe disallowed costs
  • note clause 11(25) regarding compliant job costing system
explain potential risks involved in setting pain and gain shares
  • question whether target cost achievable form the outset
explain how compensation events can impact the pain and gain shares
  • clause 63, under options C & D
describe the key differences in target contracts options C and D between the different versions of NEC Engineering and Construction Contracts
  • between primary and short contracts and between NEC versions (3 and 4)
  • terminology changes between NEC 3 and 4