Nec engineering and construction contract option broker
NEC3 adopts a fundamentally different philosophy and practice to most other standard form construction or engineering contracts. Its three core underlying principles are:.
Some key differences between NEC3 and other standard form contracts. At a more detailed level, NEC3's approach to some of the common features and practices adopted in construction and engineering projects is quite different, including:. Legal expertise is needed to identify and address the issues and risks arising in such contracts. Equally important, however, is the industry-focused knowledge necessary to ensure a detailed understanding of their nature.
Click here to start your search. Construction standard form contracts. NEC This guide was last updated in August Brief history In the early s, the Government commissioned the Latham Report to review procurement and contractual arrangements in the UK construction industry. The report concluded that strategies should be adopted to: Underlying principles of NEC3 NEC3 adopts a fundamentally different philosophy and practice to most other standard form construction or engineering contracts.
Its three core underlying principles are: NEC3 is intended to be clear, simple and easy to use, and is written in the present tense in plain English. However this can lead to problems as its brevity can, in some cases, create ambiguity and much of its terminology is untested in the courts; stimulus to good management: However it is very heavy on administration, and requires good understanding of its procedures and sufficient resources from both the employer and the contractor to make it a success; flexibility: NEC3 can be constructed from nine sections of core clauses, six main options, two dispute resolution options and seventeen secondary options.
This flexible approach is intended to avoid the need for lots of bespoke amendments, reduce the need for lengthy negotiation and also reduce the potential for disputes. However, in practice most of NEC3 contracts include considerable bespoke amendments — known as the 'Z' clauses as they form part of Option Z under the contract. The structure NEC3 contracts are constructed as follows: It now sits alongside a number of other contracts that together should mean that the NEC suite is suitable for what ever stage of a lifecycle the project is at and for any party within a project.
The contracts available within the suite are:. Suitable for any construction based contract between an Employer and a Contractor. The core clauses of the main option listed above are used in conjunction with the secondary options and the additional conditions of contract. The clauses of these options have been be adapted for simpler less risky work short contracts , for use as subcontracts, and for professional services such as design as below.
There is very little difference between the ECC and the ECS, other than the names of the parties are changed contractor and subcontractor and some of the timescales for contractual responses are altered to take into account the timescales required in the ECC contract.
This is an abbreviated version of the ECC contract and most suitable when the contract is considered "low risk" not necessarily low value on a project with little change expected. This contract is still between the employer and contractor but does not use all of the processes of the ECC making it simpler and easier to manage and administer.
Allows the contractor to sub-let a simpler lower risk contract down the line to a subcontractor. This contract is for anyone providing a service, rather than doing any physical construction works. Designers are the most obvious party that fit into this category. Whilst they are producing a design for an employer or contractor, they would sign up and follow the clauses within the PSC.
Most of the clauses within this contract are the same or similar to those in the main ECC contract, so that all contractors, designers and subcontractors have pretty much the same obligations and processes to follow as each other. This was added to the family in April and was co-developed with the Association for Project Management.
It is for simpler less complex assignments than the PSC, such as the appointment of small team for managing an ECC contract on the Employer's behalf. It is frequently used as a subcontract to the PSC for design work. Parties enter into a "framework" of which work packages will then be let during the life of that framework.
Any individual projects will then be awarded using one of the other contracts within the suite, meaning that the parties follow the headline clauses within the framework contract which is a fairly slim contract and then the individual clauses within the chosen contract for that package.
Different work packages can be let using different contracts during the life of the framework. For parties on a project that is operational or maintenance based, e. This contract is not generally used for constructing new works, but can include some amount of betterment. It is an abbreviated version of the main TSC. These contracts were launched in The Supply Contract is for big bespoke items i.
Neither of these contracts cover working on a Site. If there is a dispute between the parties on a project then the Adjudicator will follow the clauses within this contract in order to come to a decision. It can include a range of different services to be provided before, during and after engineering and construction works are completed. It was created to support Clients who wish to take a step forward by fully integrating the delivery team for large complex projects.
The ALC should be used to engage in a single collaborative contract with a number of participants in order to deliver a project or programme of work. The basis of the contract will be that all parties work together in achieving Client objectives, and share in the risks and benefits of doing so.
For each of the different contracts listed above each comes with its own set of guidance notes and flowcharts which should aid understanding of the intent of the drafted clauses.