NEC4: June 2017 Edition complete family of contracts

NEC4 Suite of Contract NEC Contract

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 changes 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: 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.

The NEC Structure

The principal NEC contracts, short contracts and subcontracts can be broadly grouped into works, services and supply as shown below. The choice of NEC 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.

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) NEC 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.