NEC4 Option C contracts gain traction in Irish construction sector
Saturday 11 July 2026
The NEC4 Option C pricing model is becoming increasingly common for major Irish construction projects to promote collaboration and manage financial risks.
The use of NEC4 contracts is becoming increasingly common in Ireland, with Option C emerging as a primary choice for larger construction projects. Developed originally by the UK-based Institution of Civil Engineers, the New Engineering Contract (NEC) suite is designed to promote collaboration between clients and contractors while improving overall project management.
Within the NEC4 suite, which was published in 2017, the "main option" refers to the selection of one of six pricing models. Option C utilizes a target price with an activity schedule and is suitable for projects regardless of whether the contractor holds design responsibility.
Under this model, projects operate on a pain/gain share mechanism. This system determines the final payment to the contractor based on the difference between the expected cost and the actual outturn cost of the works. To establish this framework, the contractor outlines an Activity Schedule at the start of the project to define the necessary tasks.