NEC3 Contractors Share Calculator: A Solution for Contractors to Gain Fair Share
The NEC3 (New Engineering Contract) is a popular contract used in the construction industry. It is known for its flexibility and ability to provide a collaborative environment between parties involved in a construction project. However, one of the most challenging aspects of the NEC3 is the compensation mechanism for contractors involved. The NEC3 Contractors Share Calculator was developed to help contractors determine their share of compensation in a fair and transparent manner.
What is NEC3 Contractors Share Calculator?
The NEC3 Contractors Share Calculator is a tool developed by the NEC to help contractors determine their share of compensation based on the work they have completed on a project. It is designed to provide transparency and certainty to the compensation mechanism under the NEC3. The calculator has been developed to be used in conjunction with the NEC3 Engineering and Construction Contract and the NEC3 Engineering and Construction Short Contract.
How does it work?
The NEC3 Contractors Share Calculator calculates the share of compensation based on the defined cost of work done by a contractor. The defined cost includes the cost of materials, labor, and other costs incurred during the project. The share of compensation is calculated based on the target cost and the actual cost of completing the project.
In simple terms, the NEC3 Contractors Share Calculator compares the actual cost of the project with the target cost. The target cost is the amount agreed upon at the beginning of the project for completing the work. The contractors` share of compensation is then calculated based on the percentage of the actual cost compared to the target cost.
Why is it important?
The NEC3 Contractors Share Calculator is crucial for contractors working on NEC3 contracts. The tool is designed to provide clarity on how the compensation mechanism works under the NEC3 and ensures that contractors receive a fair share of compensation for the work they have completed. The calculator is also essential in providing transparency to the compensation mechanism, leading to fewer disputes and an overall collaborative environment between the parties involved in the project.
Conclusion
The NEC3 Contractors Share Calculator is an important tool designed to provide clarity and transparency to the compensation mechanism under the NEC3. It provides contractors with a fair share of compensation based on the work they have completed. Furthermore, it ensures a collaborative environment between the parties involved in the project, leading to fewer disputes. As a professional, I would recommend that contractors working on NEC3 contracts use the NEC3 Contractors Share Calculator to ensure a fair share of compensation and to avoid any disputes.