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Section 5— Payment

Clause 54.2

Contractor's Share — Saving or Excess (Option C)

Purpose

Under Option C, if the Price for Work Done to Date is less than the total of the Prices, the Contractor is paid its share of the saving. If the Price for Work Done to Date is greater than the total of the Prices, the Contractor pays its share of the excess.

Practical Application

The Contractor's share incentivises cost control. A saving below target results in a bonus payment. An overspend above target results in the Contractor contributing to the excess.

Common Pitfalls

The share percentages in the Contract Data determine how much of the saving or excess is allocated. The Contractor should understand the share ranges before agreeing the target.

Related Clauses

Clause 54.3Clause 54.4Clause 11.2(31)

📖 This summary is for reference. For the full, authoritative NEC4 contract text — including all amendments, guidance notes, and flow charts — visit the official NEC website.

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⚠️ This commentary is for reference only. Always refer to the full NEC4 contract text and seek professional legal or contractual advice for your specific project.