History of NEC

The first NEC contract – then known as the 'New Engineering Contract' – was published in 1993. It was
a radical departure from existing building and engineering contracts, being written in plain
language and designed to stimulate rather than frustrate good management.

The second edition, called the NEC Engineering and Construction Contract, appeared two years later
together with a new Professional Services Contract, Adjudicator's Contract and a back-to-back set of
short forms and sub-contracts.

A decade of extensive international use followed, culminating in the development and launch of
the NEC3 contract suite in 2005. This included a new Term Service Contract and Framework Contract,
joined in 2010 by a Supply Contract.

The suite was updated and enlarged to 39 documents in April 2013, including a Professional Services
Short Contract – which has been selected by the Association for Project Management as its standard
form for appointing project managers – and an enhanced set of guidance documents.

The NEC3 suite is now endorsed by governments and industry worldwide and has an unrivalled track
record for delivering projects on time and on budget – including the London 2012 Olympic and
Paralympic Games venues.

Discover more about the NEC Story by watching an interview with NEC creator Martin Barnes CBE and
NEC Users' Group Secretary Robert Gerrard.

https://youtu.be/L7RUXQ8DJRY

How NEC Contracts Works

NEC produces a diverse range of definitive end-to-end project management contracts that empower
users to deliver projects:

 on time
 on budget
 to the highest standards.

The suite is uniquely flexible and can be used for the procurement of works, services and goods across
all sectors – including public and private, buildings and infrastructure, plant and equipment – as well
as all stages of a project lifecycle, from planning, design and project management to construction,
maintenance and facilities management.
Each contract is supported by associated guidance notes and flow charts, detailing exactly what
procedures should be followed by whom and when.

THE NEC STRUCTURE

The principal NEC3 contracts, short contracts and subcontracts can be broadly grouped into works,
services and supply as shown below. The choice of NEC3 form depends on the project complexity
and level of risk.

WORKS

Works encompasses purchases such as the construction, refurbishment and decommissioning of

buildings, structures, process plants and infrastructure – including everything from houses, schools,
hospitals and leisure facilities to infrastructure for water, energy, transport, industry and waste.

SERVICES

Services includes purchases of professional services such as engineering, architectural, project

management and consultancy works. It also covers composite services such as facilities
management, cleaning, catering, security, maintenance and data processing.

SUPPLY

Supply includes supply of high-value goods and associated services such as transformers, generators,
rolling stock, cranes, gantries and complex plant. It also includes lower-risk items such as building
materials and products, stationery, personal protective equipment and parts.

Watch the below video produced by the Hong Kong government which provides more detail on how
NEC3 works and the benefits of using the contracts.

https://youtu.be/3-S-GgZM4T4

Why NEC?
“NEC3 helped deliver the largest civil engineering project in Europe, on budget and with value for
money. NEC3 helped the project hit 45 out of its 46 targets last year, narrowly missing only one."
David Allen, Financial Director, Crossrail

The NEC3 suite of contracts is suitable for procuring a diverse range of works, services and supply
projects, spanning major framework deals through to minor works and the purchasing of goods and
services.

NEC3 contracts have been uniquely designed using the following three key unique characteristics:

 They stimulate good management of the relationship between the two parties to the contract
and, hence, of the work involved in the contract.
 They can be used in a wide variety of commercial situations, for a wide variety of types of work
and in any location.
 They are clear, simple and written in plain English using language and a structure which is
straightforward and easily understood.

“I think NEC3 is the unsung hero of the Olympic games, a bit like the spine or the heartbeat in the
human body, I believe it helped deliver the project.” Ken Owen, Commercial Director, CLM

NEC3 contracts have been used on many high profile and successful projects over the last 20 years,
including London 2012, Crossrail, Christchurch International Airport and the Halley VI British Antarctic
Survey research station. They have delivered certainty for clients in terms of project outcome as well
as ensured fair and prompt remuneration for contractors and suppliers.

Hear from two NEC3 users on their experiences of using the contracts to successfully deliver projects:

As news of these successes has spread, more and more project management teams throughout the
UK and abroad are adopting NEC3 contracts as a result. This includes the Hong Kong government,
which has committed to use the NEC3 suite for all projects tendered from 2015.

No other contract has had such a transformative effect on the construction industry, putting
the collaboration sharing of risk and reward at the heart of modern procurement. It has revolutionised
the purchasing and delivery of works, services and supply over the last two decades and looks set to
continue.
Visit our case studies page to learn more about NEC projects taking place around the world.

https://youtu.be/3BJB7BkxSUQ

RESOURCES

 A comparison of NEC & FIDIC

 A comparison of NEC & JCT

NEC4 suite of contracts

NEC3 has already had a transformative effect on the industry. The adoption of NEC3 contracts put
collaboration and collective risk sharing as the foundation for modern procurement.

With high profile projects being procured under NEC3, such as the London 2012 Olympic and
Paralympic Games, these contracts have proven that even large, high-risk, complicated projects can
be delivered on time and within budget.

NEC4 contracts reflect procurement and project management developments and emerging best
practice, with improvements in flexibility, clarity and the ease of administration.

Two brand new contracts have been added to the suite – NEC4 Design, Build and Operate Contract
(DBO) and NEC4 Alliance Contract (ALC).

NEC4 is suitable for procuring a full array of Works, Services and Supply, ranging from a major
framework to small-scale projects.

NEC4 is an evolution on the successful NEC3. NEC4 contracts keep on using plain English and present
tense to facilitate the celebration of contracts across the world.

NEC4 contracts aim to:

NEC4:

 Reflects user feedback, industry developments and user best practice

 Improved contract administration and reduces administration costs
 Increased flexibility in each contract and NEC suite
 Improved risk opportunity and management
 Designed for international use
 Better value, greater certainty and improved delivery

Key benefits of the new contract suite:

THE NEW SUITE OF CONTRACTS

 Engineering and Construction Contract (ECC)

 Engineering and Construction Short Contract (ECSC)
 Engineering and Construction Subcontract (ECS)
 Engineering and Construction Short Subcontract (ECSS)
 Term Service Contract (TSC)
 Term Service Short Contract (TSSC)
 Professional Service Contract (PSC)
 Professional Service Short Contract (PSSC)
 Supply Contract (SC)
 Supply Short Contract (SSC)
 Framework Contract (FC)
 Dispute Resolution Service Contract (DRSC) (previously NEC3 Adjudicator’s Contract)
 Design Build Operate Contract (DBO) NEW
 Alliance Contract (ALC) NEW

NEC4: CHANGES AND IMPROVEMENTS

NEC4 Design, Build and Operate Contract: Combines responsibility for usually disparate functions –
design, construction, operation or maintenance to support operational requirements procured from a
single supplier.

NEC4 Alliance Contract: For all parties to work together in achieving Client objectives, and share in the
risks and benefits of doing so.

BIM Option: To support the use of Information Modelling. It provides additional clauses to support the
management of Information Model Requirements. The NEC4 BIM Option deals with issues of
Information Model and information ownership, and liability of the parties.

Contractor’s design and build option: Contractor’s design duty has been aligned with industry
standard for designers.

Early Contractor Involvement (ECI): Launched separately from the contracts in 2015, the ECI is now
part of the NEC4 ECC.

Dispute Avoidance Board: To encourage and support parties in resolving any dispute or difference
consensually.

Payment provisions improved: Periodic assessments now require an application by the Contractor. If
no application is made by the assessment date, the Contractor does not receive payment.

New guidance suite: In producing NEC4 contracts the guidance documents were completely
reviewed and re-structured.

FIND OUT MORE:

 Download the whitepaper “The next generation – An explanation of changes and benefits” to find
out more about the changes to NEC4.
 Watch the webinar with Peter Higgins and Ian Heaphy “Revealing NEC4”.
 Discover our upcoming events on NEC4.

https://youtu.be/GOwfUm_rvOY

NEC Dictionary

NEC3 Dictionary >

NEC4 Dictionary >

NEC3 DICTIONARY

Accepted Programme

The Accepted Programme (in the ECC) is identified within the Contract Data or during the project it
will be superseded by a later programme – there is a process for submission and this must be
accepted by the project manager. The programme is to be practicable and realistic, showing when
the contractor intends to carry out each part of the works identifying the resource he intends to use –
this tool is invaluable in successfully managing a contract.

Compensation events

NEC3 contracts are underpinned by a philosophy that the contractor (in the ECC) should not lose out,
nor benefit from a windfall, as a result of an event which occurs and is at the employer’s risk.
Compensation events entitle a contractor to be compensated for any impact the event has on the
prices, completion or key dates in the contract.

The cost impact of a compensation event is based upon the effect the event has on the cost of work
already done and the forecast cost of work not yet done at the time that the project manager
instructed the contractor to submit a quotation for the compensation event.

Completion

This is when all work that the Works Information (in the ECC) states is to be completion by the
Completion Date, including correcting any notified Defects.

Contract

NEC3 contracts are a family of standard contracts, each of which stimulates good management, are
flexible and are clear and simple.

NEC3 contracts can be used during the entire project life-cycle; from planning, defining legal
relationships and procurement of works, all the way through to project completion, FM or asset
maintenance, and beyond. The intended outcome of NEC3 contracts is that time and money
performances are improved while increasing standards by encouraging collaborative working in order
to achieve shared project objectives. This philosophy promotes a less adversarial approach,
decreasing the chance and impact of costly disputes.

Contract data
This information needs to be completed as part of the necessary contract documents; in the ECC this
contains details such as starting date/Completion Date/employer details/defects date and the like. It
is in two parts; part one (provided by the employer) and part two (provided by the contractor).

Core clauses

Most NEC3 contracts have nine core clauses which follow the list below from the ECC:

1. General terms
2. Contractor's main responsibilities
3. Time
4. Testing and Defects
5. Payment
6. Compensation events
7. Title
8. Risk and insurance
9. Termination

Defect

In the ECC, this is a part of the works which is not as stated in the Works Information or not in
accordance with applicable law or the accepted design. There is a reciprocal obligation on both the
supervisor and contractor to notify each other as soon as they are aware of a Defect. At an agreed
date, the project supervisor will list any uncorrected defects or certify that there are no defects
(defects certificate).

Defects Certificate

In the ECC, the supervisor issues this at or just after the defects date. The certificate is a statement that
there are uncorrected defects or that there are no defects, this starts the closing down of the
contract.

Defined Cost

A defined term used in the ECC and other NEC3 contracts to give the parties a definition of
Contractor’s cost for different use in different main Options. They only include the amounts calculated
using rates and percentages in the Contract Data and other amounts at open market/ tendered
/discounted rates.

Delay damages

This is a secondary option within the contract which can be applied if completion by the contractor
(in the ECC) is later than the Completion Date. They must be a genuine estimate of likely loss to the
employer at the time of entering the contract.

To support constructive relationships, for example in collaborative based arrangements, these are
often set at or close to zero.

Disallowed Cost

These are an element of Defined Cost when using ECC Options D to F. The applicability of such cost is
decided by the project manager. They are costs which the contractor has incurred but the contractor
states are to be disallowed – for example, those costs which the contractor cannot justify via accounts
and records.

Early Warning

The contractor and project manager should notify each other, as soon as practicable, of any matter
which could affect the cost, completion, progress or quality of the works (in the ECC).
Find out more about Early Warnings.

ECC

The NEC3 Engineering and Construction Contract: the most frequently used contract from the NEC3
family which has been used on both high profile and every day projects such as infrastructure,
buildings, highways and process plants.

This contract should be used for the appointment of a contractor for engineering and construction
work, including any level of design responsibility.

ECSC

The NEC3 Engineering and Construction Short Contract: this is an alternative to the ECC designed for
use with contracts which do not require sophisticated management techniques, comprise
straightforward work and impose only low risks on both the employer and the contractor.

ECSS

The NEC3 Engineering and Construction Short Subcontract: this can be used as a subcontract to both
the ECC and the ECSC. It should be used with contracts which do not require sophisticated
management techniques, comprise straightforward work and impose only low risks on both the
contractor and the subcontractor.

Main Options

These are the pricing mechanisms that the main NEC3 contracts offer to choose from at tender stage.
These Options include lumps sum, target cost or cost reimbursable contracts.

FC

The NEC3 Framework Contract: intended for use in the appointment of supplier(s) to carry out work or
provide design or advisory services on an 'as instructed' basis over a set term.

NEC3 ECC Accredited Project Manager

This is the only NEC3 accreditation available, recognised by many employers, to develop and
recognise highly competent ECC project managers.

NEC3/NEC3 contracts

NEC3 is a family of contracts that facilitates the implementation of sound project management
principles and practices as well as defining legal relationships.

It is suitable for procuring a diverse range of works, services and supply, spanning major framework
projects through to minor works and purchasing of supplies and goods. The implementation of NEC3
contracts has resulted in major benefits for projects both nationally and internationally in terms of time,
cost savings and improved quality.

Option A

Option A: priced contract with activity schedule (used with ECC, ECS, TSC & PSC)

Option B

Option B: priced contract with bill of quantities (used with ECC & ECS)

Option C

Option C: target contract with activity schedule (used with ECC, ECS, TSC & PSC)
Option D

Option D: target contract with bill of quantities (used with ECC & ECS)

Option E

Option E: cost-reimbursable contract (used with ECC, ECS & TSC)

Option F

Option F: management contract (used with ECC)

Option G

Option G: term contract (used with PSC)

Services

Various NEC3 contracts deal with the provision of services. This includes purchases of professional
services such as engineering, architectural, project management and consultancy works. It also
covers composite services such as asset management/maintenance, also facilities management (FM)
covering things like cleaning, catering, decorating, security, maintenance and data processing.

SC

The NEC3 Supply Contract: this includes supply of high-value goods and associated services such as
transformers, generators, rolling stock, cranes, gantries and complex plant. It also includes lower-risk
items such as building materials and products, stationery, personal protective equipment and parts.

SSC

The NEC3 Supply Short Contract: intended for local and international procurement of goods under a
single order or on a batch order basis with contracts which do not require sophisticated management
techniques and impose only low risks on both the purchaser and supplier.

Target contract

This is a type of pricing mechanism that allows the employer and the contractor (in the ECC) an
approach for sharing risk and opportunity. The employer retains the cost and time risk linked to
contractual changes, the financial effects of cost overruns can be shared. Target contracts should
encourage delivery of a project on time and to budget, allowing a greater emphasis on Contractor’s
cost than other arrangements.

Time risk allowance

This allowance is made by the contractor (in the ECC) when preparing his programme. These are
owned by the contractor and provided to demonstrate that the contractor has made due allowance
for risks which are his under the contract.

They must be realistic - unrealistic allowances could prevent the project manager from accepting the
programme.

TSC

The NEC3 Term Service Contract: intended to be used for the appointment of a supplier for a period of
time to manage and provide a service.

TSSC

The NEC3 Term Service Short Contract: intended for appointment of a supplier for a period of time to
manage and provide a service as alternative to the TSC for contracts which do not require
sophisticated management techniques, comprise straightforward work and impose only low risks on
both the employer and the contractor.

Working Areas

A defined term in ECC to describe those areas which are necessary for, and only used to deliver, the
required works.

Works

Various NEC3 contracts deal with the provision of works. This encompasses contracts for the
construction, refurbishment and decommissioning of buildings, structures, process plants and
infrastructure – including everything from houses, schools, hospitals and leisure facilities to infrastructure
for water, energy, transport, industry and waste.

Works Information

A defined term in the ECC, this includes the specification and description of works the contractor is to
provide; it also might include a series of constraints to which the contractor must adhere to. It will be
included either in a place specified by the contract data or later amended by a project manager’s
instruction.

Z clause

This is a secondary Option available in a number of NEC3 contracts. These allow for additional
conditions of contract to that in the printed form – this could comprise of additions, deletions or
omissions. Careful consideration should be given to the need for a Z clause. Care should also be taken
to ensure that the clause retains the clarity, style and terminology of the rest of the NEC3 contract as
well as that it does not cause conflict with other clauses.

NEC4 DICTIONARY

Accepted Programme

The Accepted Programme (in the ECC) is identified within the Contract Data or during the project it
will be superseded by a later programme – there is a process for submission and this must be
accepted by the project manager. The programme is to be practicable and realistic, showing when
the contractor intends to carry out each part of the works identifying the resource it intends to use –
this tool is invaluable in successfully managing a contract.

Compensation events

NEC4 contracts are underpinned by a philosophy that the contractor (in the ECC) should not lose out,
nor benefit from a windfall, as a result of an event which occurs and is at the client’s risk.
Compensation events entitle a contractor to be compensated for any impact the event has on the
prices, completion or key dates in the contract.

The cost impact of a compensation event is based upon the effect the event has on the cost of work
already done and the forecast cost of work not yet done at the dividing date, which is often when the
project manager instructed the change to the scope.

Completion

This is when all work that the scope (in the ECC) states is to be completion by the Completion Date,
including correcting any notified Defects.

Contract

NEC4 contracts are a family of standard contracts, each of which stimulates good management, are
flexible and are clear and simple.
NEC4 contracts can be used during the entire project life-cycle; from planning, defining legal
relationships and procurement of works, all the way through to project completion, FM or asset
maintenance, and beyond. The intended outcome of NEC4 contracts is that time and money
performances are improved while increasing standards by encouraging collaborative working in order
to achieve shared project objectives. This philosophy promotes a less adversarial approach,
decreasing the chance and impact of costly disputes.

Contract data

This information needs to be completed as part of the necessary contract documents; in the ECC this
contains details such as starting date/Completion Date/client details/defects date and the like. It is in
two parts; part one (provided by the client) and part two (provided by the contractor).

Core clauses

Most NEC4 contracts have nine core clauses which follow the list below from the ECC:

1. General terms
2. The Contractor's main responsibilities
3. Time
4. Quality management
5. Payment
6. Compensation events
7. Title
8. Liability and insurance
9. Termination

DBO

The NEC4 Design Build and Operate Contract (DBO) allows Clients to procure a more integrated
whole-life delivery solution. It reflects the increasing demand for contracts extending into the
operational phase.

The benefit of the NEC4 DBO contract is that it combines the responsibilities for design, construction,
operation and/or maintenance, which can be procured from a single supplier. The DBO contract can
therefore include a variety of services during construction and these works are completed.

Defect

In the ECC, this is a part of the works which is not as stated in the scope or not in accordance with
applicable law or the accepted design. There is a reciprocal obligation on both the supervisor and
contractor to notify each other as soon as they are aware of a defect. At an agreed date, the project
supervisor will list any uncorrected defects or certify that there are no defects (defects certificate).

Defects certificate

In the ECC, the supervisor issues this at or just after the defects date. The certificate is a statement that
there are uncorrected defects or that there are no defects, this starts the closing down of the
contract.

Defined cost

A defined term used in the ECC and other NEC4 contracts to give the parties a definition of
Contractor’s cost for different use in different main options. They only include the amounts calculated
using rates and percentages in the contract data and other amounts at open market/ tendered
/discounted rates.

Delay damages
This is a secondary option within the contract which can be applied if completion by the contractor
(in the ECC) is later than the completion date.

To support constructive relationships, for example in collaborative based arrangements, these are
often set at or close to zero.

Disallowed cost

These are an element of defined cost when using ECC options D to F. The applicability of such cost is
made by the project manager. They are costs which the contractor has incurred but the contractor
states are to be disallowed – for example, those costs which the contractor cannot justify via accounts
and records.

Early warning

The contractor and project manager should notify each other, as soon as practicable, of any matter
which could affect the cost, completion, progress or quality of the works (in the ECC).

Find out more about early warnings.

ECC

The NEC4 Engineering and Construction Contract: the most frequently used contract from the
NEC family which has been used on both high profile and every day projects such as infrastructure,
buildings, highways and process plants.

This contract should be used for the appointment of a contractor for engineering and construction
work, including any level of design responsibility.

ECSC

The NEC4 Engineering and Construction Short Contract: this is an alternative to the ECC designed for
use with contracts which do not require sophisticated management techniques, comprise
straightforward work and impose only low risks on both the client and the contractor.

ECSS

The NEC4 Engineering and Construction Short Subcontract: this can be used as a subcontract to both
the ECC and the ECSC. It should be used with contracts which do not require sophisticated
management techniques, comprise straightforward work and impose only low risks on both the
contractor and the subcontractor.

Main options

These are the pricing mechanisms that the main NEC4 contracts offer to choose from at tender stage.
These options include lumps sum, target cost or cost reimbursable contracts.

FC

The NEC4 Framework Contract: intended for use in the appointment of supplier(s) to carry out work or
provide design or advisory services on an 'as instructed' basis over a set term.

NEC4/NEC4 contracts

NEC4 is a family of contracts that facilitates the implementation of sound project management
principles and practices as well as defining legal relationships.

It is suitable for procuring a diverse range of works, services and supply, spanning major framework
projects through to minor works and purchasing of supplies and goods. The implementation of
NEC4 contracts has resulted in major benefits for projects both nationally and internationally in terms
of time, cost savings and improved quality.

Option A

Option A: priced contract with activity schedule (used with ECC, ECS, TSC & PSC)

Option B

Option B: priced contract with bill of quantities (used with ECC & ECS)

Option C

Option C: target contract with activity schedule (used with ECC, ECS,TSC & PSC)

Option D

Option D: target contract with bill of quantities (used with ECC, ECS)

Option E

Option E: cost-reimbursable contract (used with ECC, ECS, TSC & PSC)

Option F

Option F: management contract (used with ECC)

Services

Various NEC4 contracts deal with the provision of services. This includes purchases of professional
services such as engineering, architectural, project management and consultancy works. It also
covers composite services such as asset management/maintenance, also facilities management (FM)
covering things like cleaning, catering, decorating, security, maintenance and data processing.

Scope

A defined term in the ECC, this includes the specification and description of works the contractor is to
provide; it also might include a series of constraints to which the contractor must adhere to. It will be
included either in a place specified by the contract data or later amended by a project manager’s
instruction.

SC

The NEC4 Supply Contract: this includes supply of high-value goods and associated services such as
transformers, generators, rolling stock, cranes, gantries and complex plant. It also includes lower-risk
items such as building materials and products, stationery, personal protective equipment and parts.

SSC

The NEC4 Supply Short Contract: intended for local and international procurement of goods under a
single order or on a batch order basis with contracts which do not require sophisticated management
techniques and impose only low risks on both the purchaser and supplier.

Target contract

This is a type of pricing mechanism that allows the client and the contractor (in the ECC) an approach
for sharing risk and opportunity. The client retains the cost and time risk linked to contractual changes,
the financial effects of cost overruns can be shared. Target contracts should encourage delivery of a
project on time and to budget, allowing a greater emphasis on Contractor’s cost than other
arrangements.
Time risk allowance

This allowance is made by the contractor (in the ECC) when preparing its programme. These are
owned by the contractor and provided to demonstrate that the contractor has made due allowance
for risks which are the contractor's under the contract.

They must be realistic - unrealistic allowances could prevent the project manager from accepting the
programme.

TSC

The NEC4 Term Service Contract: intended to be used for the appointment of a supplier for a period of
time to manage and provide a service.

TSSC

The NEC4 Term Service Short Contract: intended for appointment of a supplier for a period of time to
manage and provide a service as alternative to the TSC for contracts which do not require
sophisticated management techniques, comprise straightforward work and impose only low risks on
both the client and the contractor.

Working Areas

A defined term in ECC to describe those areas which are necessary for, and only used to deliver, the
required works.

Works

Various NEC4 contracts deal with the provision of works. This encompasses contracts for the
construction, refurbishment and decommissioning of buildings, structures, process plants and
infrastructure – including everything from houses, schools, hospitals and leisure facilities to infrastructure
for water, energy, transport, industry and waste.

Z clause

This is a secondary option available in a number of NEC4 contracts. These allow for additional
conditions of contract to that in the printed form – this could comprise of additions, deletions or
omissions. Careful consideration should be given to the need for a Z clause. Care should also be taken
to ensure that the clause retains the clarity, style and terminology of the rest of the NEC4 contract as
well as that it does not cause conflict with other clauses.

NEC Early Warnings

WHAT IS AN EARLY WARNING?

NEC contracts have a very clear, simple, but critical process for ‘early warning’. Some call it the ‘jewel
in the NEC crown’. The contractor and project manager should notify each other of any matter which
could affect the cost, completion, progress or quality of the project.

The early warning process is simple in principle and critical to the success of NEC contracts and
facilitating the ‘spirit of mutual trust and cooperation’ required by Clause 10.1 of the contract. The
contract administrator must give the process, and the associated Risk Register, the attention it
deserves and develop and use his or her ‘soft skills’ to get the best out of risk reduction meetings.

FEATURED CONTRACTS

All NEC contracts require the supplier and the contract administrator (Contractor and Project
Manager in the ECC, Consultant and Employer under the PSC2, Contractor and Service Manager
under the TSC3) to formally notify each other of an early warning of certain types of event.
Find out more about the NEC Contracts.

WEBINARS

Watch Richard Patterson, NEC and Procurement Specialist, Mott MacDonald, and Rob Gerrard, NEC
Users’ Group Secretary, discuss the early warnings process.

https://youtu.be/HpDvjOTyK-Q

FURTHER READING

Richard Patterson, NEC Consultant, has written a paper entitled ‘Making the most of your early
warnings – sort out your TQs and RFIs…and what about the opportunities?’

Download it for free.

Governments

The NEC3 suite has built an enviable reputation for use by both public and private sectors throughout
the world.

NEC3 contracts are designed for global application, which has enabled governments worldwide to
adopt them for a diverse range of public sector projects.

UNITED KINGDOM

NEC3 contracts have become public sector contracts of choice in the UK, being used for nearly all
projects procured by national and local government bodies and agencies.

NEC is endorsed for public sector use in the UK Government Construction Strategy as well as by the
Construction Clients' Board, the Crown Commercial Service, the Facilities Management Board of the
UK Cabinet Office, the Association for Project Management and the British Institute of Facilities
Management.

Find out how NEC is supporting the CCS Total Facilities Management agreement based on NEC3 Term
Service Contract.

FEATURED PROJECT:

Procure 21+
Value: £4billion, Employer: Department of Health
Start - Finish: 2010 – 2016
Click here for more information.

AUSTRALASIA

The NEC3 suite is being increasingly used throughout the Australasian region. A number of clients
including local authorities, utility and private sector companies are undertaking projects using NEC3
contracts.
In particular, the NEC is being used to facilitate early contractor involvement and some of the more
innovative forms of procurement, including pain/gain share arrangements between the parties
using Engineering and Construction Contract Options C and D.

The Term Service Contract (TSC) is also being used in New Zealand for facilities management
contracts.

FEATURED PROJECT

Christchurch International Airport

Value: £5m, Employer: Christchurch International Airport Limited
Start - Finish: May 2010 - December 2012
Click here for more information

HONG KONG

NEC contracts have already made an significant impact in Hong Kong, with the Hong Kong
government deciding to use NEC3 contracts generally for all government projects tendered in
2015/16.

The decision follows the success of a series of successful NEC3 pilot projects in the region, including the
HK$2 billion community hospital at Tin Shui Wai delivered under an Engineering and Construction
Contract Option A. Major highways, utilities and other building projects are now underway in Hong
Kong's public and private sectors.

Find out more by watching 'Partners With a Common Goal- Hong Kong Government's First NEC
Contract.'

FEATURED PROJECT

Happy Valley underground stormwater storage scheme

Value: HK$678m (£53m) Employer: Drainage Services Department, Government of Hong Kong
Start - Finish: 2012 – 2018
Click here for more information

AFRICA

NEC contracts have been used extensively in Africa since the first edition was launched in 1993.

In South Africa the government passed the Construction Industry Development Board (CIDB) act in
1994, which standardised procurement routes for all state entities to make them as straightforward as
possible. This also meant that only four forms of contract could be used under the act, including NEC
contracts.

The South African Construction Industry Development Board currently recommends NEC3 contracts for
public-sector use in South Africa.

FEATURED PROJECT

Shell Environmental Enhancement

Value: £Millions Employer: Shell Chemicals
Start - Finish: 2008 – 2010
Click here for more information

Our Partners
THE ASSOCIATION FOR PROJECT MANAGEMENT

The Association for Project Management (APM) is committed to developing and promoting project
and programme management through its Five Dimensions of Professionalism.

The association is a registered charity with over 20,000 individual and 500 corporate members making
it the largest professional body of its kind in Europe. As part of its strategy to raise awareness and
standards in the profession it is currently in the process of applying for a Royal Charter.

The Engineering and Construction Contract (ECC), Term Service Contract (TSC) and Professional
Services Contract (PSC) are approved further reading from the APM Body of Knowledge 6th edition.

The Professional Services Short Contract is produced in association with APM.

Watch an interview with Jon Broome below, Chairman of the APM's Contracts & Procurement Special
Interest Group, and one of the Professional Services Short Contract's authors.

https://youtu.be/hnOdckXN2BI

WWW.APM.ORG.UK

BRITISH INSTITUTE OF FACILITIES MANAGEMENT

The British Institute of Facilities Management (BIFM) is the professional body for facilities management
(FM). Founded in 1993, they promote excellence in facilities management for the benefit of
practitioners, the economy and society. Supporting and representing over 14,000 members around
the world, both individual FM professionals and organisations, and thousands more through
qualifications and training.

NEC and BIFM recently joined forces to develop a suite of documents exclusively for the facilities
management industry. NEC for FM was launched in May and has been endorsed by the Crown
Commercial Service.

There is also a dedicated BIFM / NEC Users' Group which gives BIFM members a number of benefits
and discounts for NEC products and services.
WWW.BIFM.ORG.UK

INSTITUTE FOR CLERKS OF WORKS AND CONSTRUCTION INSPECTORATE OF GREAT BRITAIN

The Institute of Clerks of Works and Construction Inspectorate of Great Britain (ICWCI) is the
professional body that supports quality construction through inspection. Using a support network of
meeting centres, technical advice, publications and events, it keeps its members up to date with the
ever changing construction industry.

ICWCI wholly endorses the NEC3: ECC Supervisor Accreditation, which is designed for clerks of works,
construction inspectors and architectural technicians who are aspiring to, or already practicing, as a
Supervisor across ECC projects.

WWW.ICWCI.ORG

Endorsements

THE CONSTRUCTION CLIENTS' BOARD

The Construction Clients' Board (formerly Public Sector Construction Clients' Forum) recommends that
public sector organisations use the NEC3 contracts when procuring construction. Standardising use of
this comprehensive suite of contracts should help to deliver efficiencies across the public sector and
promote behaviours in line with the principles of Achieving Excellence in Construction.

In addition to this endorsement, NEC is recommended by the South African Construction Industry
Development Board (CIDB) for use in that country. NEC3 was praised in the recent UK Parliamentary
'Construction Matters' report, which calls for transparent and non-adversarial forms of contract to
support integrated supply chains. The report states that NEC3 is 'setting the benchmark' in this area.
CROWN COMMERCIAL SERVICE

Crown Commercial Services will be using the NEC3 Term Service Contract as their new FM Model
Contract and welcomes the ‘NEC for FM’ initiative between BIFM and NEC to provide guidance and
support good practice in FM public sector procurement.

FIND OUT MORE

FACILITIES MANAGEMENT BOARD SUPPORT FOR NEC3

The Facilities Management Board of the Cabinet Office UK recognises that the NEC Term Service
Contracts Supports good practice in FM procurement in the public sector.

THE SOUTH AFRICAN CONSTRUCTION INDUSTRY DEVELOPMENT BOARD

The South African Construction Industry Development Board

Recommends NEC3 for use in South Africa.

THE INTERNATIONAL ORGANISATION FOR STANDARDISATION

The International Organisation for Standardisation recommends NEC3 for fair and transparent
procurement of works, services and supply.

A UK PARLIAMENTARY CONSTRUCTION MATTERS REPORT

A UK Parliamentary Construction Matters Report States that the NEC3 is setting the benchmark in
transparent and non-adversarial forms of contract for integrated supply chains.

THE ASSOCIATION FOR PROJECT MANAGEMENT

The Association for Project Management has developed the NEC3 Professional Services
Contract in partnership with NEC.

The Engineering and Construction Contract (ECC), Term Service Contract (TSC) and Professional
Services Contract (PSC) are approved further reading from the APM Body of Knowledge 6 th edition.

BRITISH INSTITUTE OF FACILITIES MANAGEMENT

The British Institute of Facilities Managament endorses the NEC3 Term Service Contract and all related
NEC3 documents. The NEC for FM suite of documents, produced in partnership with BIFM is also
available.

https://www.neccontract.com/About-NEC/News-Media/New-NEC-contract-format