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NEC TOOLKIT
®NEC 2023
CONTENTS
INSTRUCTIONS FOR USE
…………………………….
3 NEC CONTRACT FORMS
……………………………..
20
WHAT IS NEC
…………………………………............
4 NEC MAIN OPTIONS
………………………………….
22
WHY NEC EXISTS
……………………………………….
5 NEC CONTRACT STRUCTURE
……………………...
26
INDUSTRY ADOPTION AND
RECOGNITION ..
7 WHERE NEC IS USED
………………………………….
27
NEC BEST PRACTICE
…………………………………..
8 NEC COMMUNITY
……………………………………..
28
WHY CHOOSE NEC
…………………………………....
9 NEC SUPPORT
………………………………………
29
CHOOSING THE RIGHT NEC
CONTRACT ……...
19
®NEC 2023
The NEC suite of contracts has differing terms for the organisation providing the
works/services, etc., as well as for the role of administering the contract, this toolkit refers to
them as ‘the contracted provider’ and ‘the Client’s contract manager’.
Additional resources can be accessed by clicking the buttons
throughout this toolkit.
The purpose of this NEC Toolkit is to help inform all users of the NEC, whether
first time or experienced users, when making executive decisions on the
procurement and contract strategy.
It can be used to help understand what influences the decision for any of the
following and more:
 whether to choose the NEC over other forms of contract
 which NEC contract to use
 the appropriate allocation of pricing risk – main Options
 the appropriate allocation of liability and other risks
 considering Secondary Options
 whether design and construct or construct only
INSTRUCTIONS FOR USE
®NEC 2023
Evolution of NEC
Contracts
NEC Glossary of
Terms
The NEC (New Engineering Contract) is an evolving family of
procurement contracts that were originally launched in the UK in 1993 and
developed as a modern-day alternative to traditional construction contracts.
The NEC is currently in its 4th edition (NEC4).
It aims to be a worldwide benchmark for best practice in the procurement
and delivery of work, services and supplies and it is successfully supporting
the delivery of thousands of projects worldwide.
It is a contract built around proven best practice in project management and
it engenders a collaborative approach to management and delivery.
Find out more about the NEC family of contracts by clicking on the video thumbnails
WHAT IS NEC
®NEC 2023
Play the Introduction
to NEC4 video
Play the Introduction
to NEC4 FMC video
Fair and sustainable
allocation of risk
Alignment of interests
Early identification of risk
to the project
Timely implementation of
change
One source of truth on
project status and costs
Increased confidence of
outcome
Choice of optional contract
clauses
Alignment of all sub-contracts
Options for multi-party
collaboration or alliance
Options for dispute avoidance
inspections
Process for resolution of
compensation events
Formal adjudication procedure
All parties agree each update of
the delivery programme
Choice of pricing and delivery
models
Requirement to act in spirit of
mutual trust and co-operation
Options for sharing risk & reward
Early warning procedure
Process to deal with early warnings
Senior representatives of parties
deal with most disputes
Regular updates of delivery
programme and anticipated final
costs
®NEC 2023
NEC offers a sophisticated and
comprehensive solution built
on three main principles of,
clarity & simplicity, flexibility,
and to be a stimulus to good
management.
Enabling organisations that
are willing to work in
collaboration to realise major
benefits such as
demonstrating value for
money through utilising the
effective project management
procedures and best practice
in procurement.
Delivering better
project outcomes
WHY NEC EXISTS
How NEC can help
your business
NEC Risk Allocation
NEC delivering
better value
Procurement processes and project goals can differ significantly from one
another, meaning there may be many variables that can impact on delivery,
commercials outcomes and resources.
The NEC promotes and enhances collaborative working and if used in this manner
helps achieve greater cost certainty, delivery to agreed timescales and
appropriate quality standards.
The NEC is intended to be used and referred to throughout the project lifecycle, from preparing
the business case to operation and maintenance of an asset. It incorporates robust real-time
approach to change management that allows parties to deal with change quickly, effectively and
in a collaborative manner, helping to avoid or reduce the impact on the overall cost and
programme.
NEC can also help save on legal fees. NEC4 provides a set of standard ready to use contracts
which are designed to work best when they have not been amended – although they do of
course provide the option for appropriate amendments to be made to suit specific circumstances
and/or requirements, such as country specific laws.
®NEC 2023
®NEC 2023
“The NEC is capable of being a common contract for the whole industry.”
“The New Engineering Contract contains virtually all of these
assumptions of best practice, and others, which are set out in the
Core Clauses, the main and secondary options.”
“Public and private sector clients should begin to use the NEC, and phase out "bespoke"
documents”
“Use of the NEC by private sector clients should be strongly promoted by client and industry
bodies.”
The NEC was the first contract to introduce a collaborative
approach to risk and contract management, include an
adjudication process and written in plain language.
In 1994 Sir Michael Latham’s report, ‘Constructing the Team’,
highlighted and recommended the use of the NEC:
This allowed NEC to be adapted and adopted across all industries often
becoming the contract of choice for both small, low risk to large and
complex projects internationally.
The NEC has received
Government Endorsement by the
Government Construction Board,
Cabinet Office UK and the
Development Bureau, HKSAR
Government, further instilling
confidence in its use on public
sector projects.
INDUSTRY ADOPTION AND RECOGNITION
NEC4 contracts:
Promotes active
management
Provide clear
documentation and
outline of roles,
responsibilities and
processes
Define timescales
for all activities
Instil a level of
certainty of the
project outcomes
Allow to forecast the
real effect of any
change on time and
cost
Ensure an
adequate and fair
compensation
model
Support and
encourage
collaborative
working
Help minimise
chances of formal
disputes occurring
®NEC 2023
NEC BEST PRACTICE
®NEC 2023
When an organisation is looking to carry out
construction or any other project work, they need to
decide on the appropriate form of contract – often with the
guidance of professional advisors.
They and their advisors may have some experience of
certain forms of contract, and be wary about using NEC
either because they know little about it or, because of the
many misconceptions that exist about it.
The following high-level guidance on NEC contracts will
provide decision makers and key business stakeholders,
with critical information necessary to make an assessment as to
which form of contract is right for their business and it is hoped,
instil confidence in the philosophy behind the NEC contract.
The guidance shows how the NEC contracts deal with issues of
concern at various parts of an organisation – board oversight, finance,
legal, procurement and operational.
WHY CHOOSE NEC
Confidence in the proposed
contract outcomes
NEC contracts have been
used since 1993 with users
reporting positive
experience
Governmental approval of
the use of these contracts
has been given in UK, Hong
Kong and South Africa
Many clients who have
adopted NEC contracts use
them repeatedly for their
work
A range of digital contract
management systems exist
which support the contract
administration and provide
accessibility and visibility of
the contract processes
GUIDANCE - BOARD OF DIRECTORS
Governance process
The Client appoints people
to manage the contract and
monitor performance -
controlling cost, time and
quality - on its behalf
The Client’s contract
manager has the authority
to instruct a change to the
Scope where necessary, e.g.
if the Client’s requirements
change
Except where the conditions
allow, the contract cannot
be changed without written
agreement of both Parties
Certainty of outcome
The contract restricts
changes to time and price to
a set of specific grounds and
clearly defined processes –
there are no provisions for
global claims of additional
cost and/or extension of time
There are strict change and
risk management procedures
with clear timescales for
action and sanctions for
failures to act
If there is an entitlement to
change the price or
programme, it is
implemented at the time of
the event, giving the Parties
knowledge of cost outcome
and projected completion of
work
®NEC 2023
Deliver social outcomes
Interfaces between the contracted
provider and any third parties to
the contract which may be needed
to achieve the project objectives,
can be specified by the Client and
identified in the contract
Key performance indicators can be
incorporated into the contract
which can be used to incentivise
social outcomes by rewarding for
achievement or improvements
Provision to include climate change
requirements and set targets with
financial incentives for achieving or
improving on them can be included
Protect reputational risk
Anti-corruption provisions are
included, with stated consequences
if any corruption is found to have
taken place
The Parties are prevented from
disclosing any information obtained
in connection with the work except
as necessary to their duties under
the contract
The contracted providers can only
publicise the work if the Client
agrees
The contracted providers use of
Client material is restricted to that
necessary for providing the work
GUIDANCE - BOARD OF DIRECTORS (continued)
®NEC 2023
Financial controls
The contract makes available a
wide range of commercial,
pricing and risk options to suit
all circumstances, from lump
sum to cost reimbursable
The contract specifies a list of
events which can give rise to a
change in the cost and timing of
the work
Changes to the cost and timing
of the work are assessed at the
time of a specified event
through a process designed to
encourage the agreement of the
effects of the change, with the
aim of reducing the chance of
disputes
The liabilities of the Parties and
the types of insurances required
to cover these liabilities are
stated in the contract
A Project Bank Account option is
available for UK contracts,
allowing for faster payment
whilst also providing security of
payment for the supply chain
Open book accounting provides
transparency and helps forecast
as well as authenticate cost
when the cost reimbursable and
target options are used
The Client’s contract manager
provides regular reports as
prescribed by the Client in the
Scope of the contract between
them
A value engineering clause has
been added to the unabridged
contracts which shares the
benefits of any accepted
proposals
Target contracts contain a
mechanism for sharing financial
gains as well as over spends
against the final amended
target price
The contract requires the
contracted provider and the
Client’s contract manager to
prepare regular updates of the
forecast outturn cost in
consultation with each other
on cost reimbursable and
target based contracts
The Client specifies its
requirements and standards for
financial reporting by the
contracted provider within the
scope, this enables integration
with the Client’s systems
Reporting and integration
GUIDANCE - FINANCE DIRECTOR
GUIDANCE - LEGAL COUNSEL
®NEC 2023
Confidence in legal outcome
The NEC has been in use since 1993 by
repeat clients. Its adoption was
recommended by Sir Michael Latham
and it has been endorsed by
Governments
There have been only a limited number
of legal cases referred to the Courts with
no significant adverse findings
Clear dispute escalation and resolution
processes and options involving Senior
Representatives of the Parties,
adjudication or a dispute board can be
followed by either arbitration or a Court
process
Country specific Secondary Options are
available for inclusion with provisions
which incorporate legislative
requirements
Risk management
Risks carried by the Client are clearly
identified under core clause 6 as
compensation events. There is a clear
and strict process for determining the
effect on both time and cost should an
event occur
A mandatory early warning procedure
requires the early identification of all
risks to time, cost and quality, followed
by a review of the options for avoiding or
reducing the effects, recording the
actions which should be taken and by
whom; the contract manager facilitates
the process and takes the final decision
Client requirements for managing risks,
including health and safety and the
protection of data are stated in the
Scope
Contract procedures oblige co-operation
and encourage the agreement of change,
aiming to reduce the chance of disputes
GUIDANCE - LEGAL COUNSEL
Liabilities
The Parties liabilities, including those for
damage or injury and the corresponding
allocation of costs, are clearly set out in
core clause 8 of the contract
Liability for third party risks are allocated
in the contract under core clauses 2, 6, 8
and additionally through the inclusion of
secondary option Y(UK)3.
Contract includes options for requiring
the contractor to provide a performance
bond or ultimate holding company
guarantee
Option for undertakings to others
(warranties)
Client states any limits to the liability of
the contractor
Procedures for termination and
consequent liabilities stated in the
contract
Contract manager cannot relieve
Contractor of its responsibilities
®NEC 2023
Procurement options
A wide range of contracts to suit all types of
work and contracting arrangements including
alliancing, management contracting, design
build and operate, as well as more traditional
forms available in long and short versions
Different pricing options provided to allow
the selection of preferred pricing methods
and risk allocation including, lump sum
contracts, measured contracts, target
contracts (sharing potential cost
savings/overrun), cost reimbursable contracts
The contract includes an option for
identifying Conditions and Key Dates which
enables the co-ordination of multiple
contractors working on the same project to
work collaboratively
Secondary Options provide great flexibility
to select appropriate provisions to meet
procurement requirements, allocate risk,
introduce sectional completion, incorporate
an information model (BIM) among other
needs
Option for early contractor involvement –
before design finalised - to work with the
Client in completing design, assessing risks
and incorporating buildability, etc.
Design responsibility is by default retained
by the Client but can be transferred in full
or in part to the contracted provider
GUIDANCE - PROCUREMENT/COMMERCIAL DIRECTOR
®NEC 2023
Contract controls
The Client’s contract manager is in
control of cost, time and quality
Change control is managed by the
Client’s contract manager, with an
option to seek alternative assessments
that provide an appropriate balance of
time, quality and cost which meet the
Parties needs
Change to cost and time determined at
the time of the event
A wide range of incentives can be
included in the contract, through the
inclusion of Secondary Options for KPIs,
sharing of benefits for cost savings,
whole life cost improvements, meeting
environmental targets, etc.
Progressive finalisation and
agreement of the audited cost in cost
reimbursable and target contracts
Assessment of the final payment is
conclusive evidence of the final
amount due unless either Party refers
it to the dispute process
Bonus for early completion and/or
delay damages can be included within
the contract to motivate timely
completion
No change can be made to the scope
of work without an instruction by the
contract manager
GUIDANCE - PROCUREMENT/COMMERCIAL DIRECTOR (continued)
®NEC 2023
Contract management
Active management of
the contract by the
Client’s contract manager
allows the timely
agreement and
instruction of Tasks
A regularly updated
programme/plan shows
future work and forecast
dates to meet contract
requirements
The change event process
allows continuous
updating of forecast
outturn cost and time to
complete work
An early warning register
is maintained to identify
and mitigate the risk to
time, cost, quality and
disruption to the Clients
operational activities
The contract manager
controls the acceptance
of subcontractors and key
people
The contracted provider
is required to operate a
quality management
system which complies
with the Client’s
requirements
Change control
The contract lists the
events which could give
rise to a change in cost or
completion of works and
services
Change in cost and/or
completion established at
the time of the event
Some of the contracts
include acceleration
provisions.
The procedures
encourage collaboration
and the agreement of
change, aiming to reduce
the chance of disputes
The early warning process
not only identifies
potential risks to the
project but also what
actions to take and by
whom
The decision of the
contract manager is final
subject only to the
dispute resolution
process
GUIDANCE - OPERATIONS DIRECTOR
®NEC 2023
Staffing requirements
The contract can be
managed by the Client using
internal staff or contracted
out to a specialist
organisation
The Client has a limited
contractual role compared to
that of the Client’s contract
manager. The Client’s
contract manager needs to
have a thorough
understanding of how the
contract is operated
The Client’s contract
manager is responsible for
the successful completion of
the contract and will need to
have the appropriate skills
Training in the use of the
contract including NEC
accreditations, is available
either in-house or in open
courses to ensure that
people have the appropriate
skills
GUIDANCE - OPERATIONS DIRECTOR (continued)
®NEC 2023
Short Contract
Short contracts are an abridged version from the
full contract and are used where sophisticated
management techniques are not required, the
work is straightforward and imposes only low risk
on both Parties.
Straightforward Work
No restriction on value
Low risk transfer
No Early Warning Register
Low administration burden
No Accepted Programme
Full Contract
Complex Projects
No restriction on value
High risk transfer
Manage Early Warning Register
Sophisticated management tools
Complex programme /plan requiring acceptance
When to Use | Risk Level | Management
DIFFERENCES BETWEEN THE FULL AND
SHORT CONTRACTS
Business Case Design Delivery Operation
DRSC
FC
TSSC
ECSC & ECSS
SSC
PSSC
DBO
ALC
TSC & TSS
FM & FMS & FMSC
SC
ECC & ECS
PSC & PSS
Other
Contracts
LOW
Complexity
&
Risk
HIGH
The NEC suite of contracts caters for a
wide range of works and services. The
principal NEC4 contracts, short
contracts and subcontracts can be
broadly grouped into
as shown in the matrix. The choice of
contract depends on the type of project
and its complexity and levels of risk.
works services supply
Choosing the right
contract
*to identify the acronyms, please hover over the relevant text and click the hyperlinks
CHOOSING THE RIGHT NEC CONTRACT
®NEC 2023
®NEC 2023
Professional Service
Contract
Used to employ a
consultant to undertake
any kind of professional
service
Facilities Management
Contract
Used by a Client to
appoint a Service
Provider for a period of
time to manage and
provide any type of
facilities management
services.
Engineering &
Construction Contract
Used to employ a
contractor to undertake
any kind of construction
work including design
responsibility
Supply Contract
Used for the
procurement of high
value goods and related
service including design
Term Service Contract
Used to employ a
supplier for a period of
time to manage and
provide a service
NEC CONTRACT FORMS
®NEC 2023
Design Build & Operate
Contract
Used to for the
appointment of a
contractor for design,
construction or
modification and
operation of assets
Framework Contract
Used for the
appointment of one or
more suppliers over a
set term to carry out
work or provide a
service or goods on an
‘as instructed ’ basis
using NEC4 contracts.
Dispute Resolution
Service Contract
Used for the
appointment of an
adjudicator or dispute
avoidance board
member to resolve
disputes under NEC4
contracts
Alliance Contract
Used to employ a
contractor to undertake
any kind of construction
work including design
responsibility
®NEC 2023
NEC MAIN OPTIONS
NEC contracts provide a number of main Options to define the payment mechanism and the way in which the supplier’s financial risk is shared
between the parties. This guidance will help to identify the appropriate choice of the Option which best meets the project objectives.
The Options available, and the contracts they are used on, are set out below. They apply to the Engineering and Construction Contract (ECC),
Professional Service Contract (PSC), Term Service Contract (TSC) and Facility Management Contract (FMC). The Supply Contract (SC), Design Build
and Operate Contract (DBOC), Alliance Contract (ALC) and the short contracts have no main Options. The same Options are used in the respective
subcontracts with the exception of Option F which only appears in the ECC.
ECC terms Client Project Manager Contractor
PSC Client Service Manager Consultant
TSC Client Service Manager Contractor
FMC Client Service Manager Service Provider
ECS Contractor Contractor Subcontractor
PSS Consultant Consultant Subcontractor
TSS Contractor Contractor Subcontractor
FMS Service Provider Service Provider Subcontractor
The following criteria to be used to help identify the appropriate
Option are described for the ECC or TSC contract. For other
contracts substitute the terms in the following table.
A Priced contract with activity schedule / Priced Contract with price
list
B Priced contract with bill of quantities
C Target contract with activity schedule / Target contract with price
list
D Target contract with bill of quantities
E Cost reimbursable contract
F Management contract
In addition, X22, the Early Contractor Involvement (ECI) Option can
be used in ECC with either Option C or E.
®NEC 2023
NEC MAIN OPTIONS
For relatively straightforward projects where
 the Client requirements are well developed into either a performance based or output based
Scope,
 the project scope and requirements are well-defined and relatively stable,
 the Client wants greater cost certainty and
 the Client is confident of its Contractor’s willingness and ability to manage financial risk.
ECC and PSC
• The Contractor takes the responsibility for quantity measurement.
• Lower involvement of Project Manager compared to other Options.
• Provides a high level of cost certainty – Contractor takes the greater financial risk both positive
and negative.
• Payment is made for completed activities, priced on a lump sum basis, in the Activity Schedule.
TSC and FMC
• Payment is made on the basis of completed items in the price list which can be lump sum items
or quantity related items or a combination of the two.
• Contractor takes the risk of measurement for lump sum items, Client takes the risk of a change
in the quantity related items which can increase or reduce the cost of the contract
• Client must have flexibility within its budget to accommodate quantity change
• Requires significant Service Manager involvement in measuring completed items.
• Provides a fairly high level of cost certainty - Contractor takes the greater financial risk both
positive and negative, but risk of quantity change lies with the Client.
A Priced contract with activity schedule B Priced contract with bill of quantities
For relatively straightforward projects where
 the Client requirements are well-developed into either a performance based or output based
Scope, but some elements of the project may be contracted on a design and build basis,
 Contractor design provided for by lump sum elements of the bill of quantities,
 the project scope and requirements are well-defined and relatively stable, subject to change
on the final measurement of quantities
 the Client has flexibility within its budget to accommodate quantity change and
 the Client is confident of its Contractor’s willingness and ability to manage financial risk.
• Client takes the risk of quantity change which can increase or reduce the cost of the project.
• Requires significant Project Manager involvement in measuring quantities of work carried out.
• Provides a fairly high level of cost certainty - Contractor takes the greater financial risk both
positive and negative, but risk of quantity change lies with the Client.
• Payment is made for the actual quantities of work carried out multiplied by the rates and prices
in the bill of quantities.
NEC MAIN OPTIONS
For more complex or larger projects where
 the Client requirements are well developed into either a performance based or output based
Scope,
 the project scope and requirements are fairly well defined with low likelihood of change –
any change to requirements will change the target and
 the Client and Contractor are willing to share project financial risk in a fully collaborative
way.
ECC and PSC
• Contractor and Client share the risk of quantity changes.
• Requires significant Project Manager role in assessing the cost of work carried out.
• Provides a moderate level of cost certainty – Client and Contractor share the cost risk of the
Contractor’s performance.
• The Project Manager has visibility of the Contractor’s costs which assists in the financial
assessment of compensation events and reduces the potential for claims and disputes.
• Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share.
TSC and FMC
• Target cost is set by the price list, which can be a series of lump items or quantity related items
or a combination of the two.
• Requires significant Service Manager role in agreeing cost of work carried out.
• Requires significant Service Manager involvement in measuring completed items.
• Provides a moderate level of cost certainty - Client and Contractor share the cost risk of the
Contractor’s performance and the risk of quantity changes.
• The Service Manager has visibility of the Contractor’s costs which assists in the financial
assessment of compensation events and reduces the potential for claims and disputes.
• Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share.
C Target contract with activity schedule C Target contract with activity schedule
For more complex or larger projects where
 the Client requirements are well-developed into either a performance based or output based
Scope, but some elements of the project may be contracted on a design and build basis,
 Contractor design provided for by lump sum elements of the bill of quantities,
 the project scope and requirements are fairly well defined with low likelihood of change –
any change to requirements will change the target and
 the Client and Contractor are willing to share project financial risk in a fully collaborative
way.
• Client and Contractor share the risk of quantity change, except that significant quantity change
can increase or reduce the target.
• Requires significant Project Manager role in agreeing cost of work carried out.
• Requires significant Project Manager role in measuring quantities of work carried out.
• Provides a moderate level of cost certainty – Client and Contractor share the cost risk of the
Contractor’s performance.
• The Project Manager has visibility of the Contractor’s costs which assists in the financial
assessment of compensation events and reduces the potential for claims and disputes.
• Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share.
NEC MAIN OPTIONS
For projects where
 the scope of the work cannot be determined in advance of the work commencing, such as
for urgent or emergency works,
 the Client requires flexibility to develop the works after the Contract Date,
 there is a high level of uncertainty or when the Contractor's expertise is essential,
 the achievement of other performance measures is of greater importance than cost and
 an early start on Site is required.
• Requires significant Project Manager role in establishing extent of work to be carried out.
• Requires significant Project Manager role in agreeing cost of work carried out.
• Provides a low level of cost certainty – Client takes the cost risk of the Contractor’s
performance.
• Payment made is the cost of the work plus the Contractor’s fee.
E Cost reimbursable contract C Target contract with activity schedule
For projects where
 the Client requires flexibility to develop the scope of the work after the Contract Date,
 the Client and Contractor collaborate in developing the scope of the work,
 the Client requires greater control and involvement in the project and
 an early start on Site is required.
• Requires significant Project Manager role in agreeing forecasts and subcontracting of work.
• Requires significant Project Manager role in agreeing cost of work carried out.
• Low level of cost certainty – cost of contracted work lies with the Client.
• Provides a low level of cost certainty – Client takes the cost risk of the Contractor’s
performance.
• Payment made is the cost of the work plus the Contractor’s fee.
C/E Target or cost reimbursable contract with ECI (ECC)
For complex or larger projects where
 the Client design is not fully developed,
 the Client requires flexibility to develop the works after the Contract Date and
 the Client and Contractor share project financial risk in a fully collaborative way.
• Requires significant Project Manager role in agreeing design, programme and target within
stated budget during stage one.
• Allows for stage two – the construction work – being cancelled at the end of stage one.
• Requires significant Project Manager role in assessing the cost of work carried out.
• Provides a moderate level of cost certainty if budget is adequate – subject to cost risk share
if Target Option is chosen.
• The Project Manager has visibility of the Contractor’s costs which assists in the financial
assessment of compensation events and reduces the potential for claims and disputes.
• Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target
share if a target Option is chosen, together with a share of the saving in the Budget.
Contracts are designed modular,
consisting of core clauses, main and
secondary contract options, dispute resolution and
jurisdiction-specific options, and additional contract
conditions.
NEC uses consistent language across all its contract
suite. Roles such as Project Manager and Supervisor
will vary with contracts. For example, TSC, PSC and
DBOC use Service Manager and have no Supervisor.
The obligation however remains constant.
NEC CONTRACT STRUCTURE
®NEC 2023
®NEC 2023
NEC can be used anywhere in the world. It is written in plain English, supporting ease of use and translation. Optional Y
Clauses allow specific provisions of local law to be incorporated into contracts. It is in use in the UK, Hong Kong, South
Africa, New Zealand, Australia, France, Germany, Ireland, the Netherlands, USA and the UAE. In 2019 NEC delivered the
venues and facilities for the Pan-American and Parapan Games in Peru.
NEC can also be used in any sector. The contract was first developed in the construction sector under the leadership of the
Institution of Civil Engineers, one of the world’s most respected professional bodies. Over the last three decades its use has
spread into sectors as diverse as oil & gas, infrastructure, facilities management, software, telecoms and pharmaceuticals.
WHERE NEC IS USED
 Construction
 Infrastructure
 Energy
 Hospitality
 MMC
 Oil & Gas
 Pharmaceutical
 Water
 Waste
View all the NEC Case
Studies here
®NEC 2023
Dedicated hubs for
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team on the use of NEC and its processes
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NEC4 Toolkit presentation for contractss

  • 2. CONTENTS INSTRUCTIONS FOR USE ……………………………. 3 NEC CONTRACT FORMS …………………………….. 20 WHAT IS NEC …………………………………............ 4 NEC MAIN OPTIONS …………………………………. 22 WHY NEC EXISTS ………………………………………. 5 NEC CONTRACT STRUCTURE ……………………... 26 INDUSTRY ADOPTION AND RECOGNITION .. 7 WHERE NEC IS USED …………………………………. 27 NEC BEST PRACTICE ………………………………….. 8 NEC COMMUNITY …………………………………….. 28 WHY CHOOSE NEC ………………………………….... 9 NEC SUPPORT ……………………………………… 29 CHOOSING THE RIGHT NEC CONTRACT ……... 19 ®NEC 2023
  • 3. The NEC suite of contracts has differing terms for the organisation providing the works/services, etc., as well as for the role of administering the contract, this toolkit refers to them as ‘the contracted provider’ and ‘the Client’s contract manager’. Additional resources can be accessed by clicking the buttons throughout this toolkit. The purpose of this NEC Toolkit is to help inform all users of the NEC, whether first time or experienced users, when making executive decisions on the procurement and contract strategy. It can be used to help understand what influences the decision for any of the following and more:  whether to choose the NEC over other forms of contract  which NEC contract to use  the appropriate allocation of pricing risk – main Options  the appropriate allocation of liability and other risks  considering Secondary Options  whether design and construct or construct only INSTRUCTIONS FOR USE ®NEC 2023
  • 4. Evolution of NEC Contracts NEC Glossary of Terms The NEC (New Engineering Contract) is an evolving family of procurement contracts that were originally launched in the UK in 1993 and developed as a modern-day alternative to traditional construction contracts. The NEC is currently in its 4th edition (NEC4). It aims to be a worldwide benchmark for best practice in the procurement and delivery of work, services and supplies and it is successfully supporting the delivery of thousands of projects worldwide. It is a contract built around proven best practice in project management and it engenders a collaborative approach to management and delivery. Find out more about the NEC family of contracts by clicking on the video thumbnails WHAT IS NEC ®NEC 2023 Play the Introduction to NEC4 video Play the Introduction to NEC4 FMC video
  • 5. Fair and sustainable allocation of risk Alignment of interests Early identification of risk to the project Timely implementation of change One source of truth on project status and costs Increased confidence of outcome Choice of optional contract clauses Alignment of all sub-contracts Options for multi-party collaboration or alliance Options for dispute avoidance inspections Process for resolution of compensation events Formal adjudication procedure All parties agree each update of the delivery programme Choice of pricing and delivery models Requirement to act in spirit of mutual trust and co-operation Options for sharing risk & reward Early warning procedure Process to deal with early warnings Senior representatives of parties deal with most disputes Regular updates of delivery programme and anticipated final costs ®NEC 2023 NEC offers a sophisticated and comprehensive solution built on three main principles of, clarity & simplicity, flexibility, and to be a stimulus to good management. Enabling organisations that are willing to work in collaboration to realise major benefits such as demonstrating value for money through utilising the effective project management procedures and best practice in procurement. Delivering better project outcomes WHY NEC EXISTS
  • 6. How NEC can help your business NEC Risk Allocation NEC delivering better value Procurement processes and project goals can differ significantly from one another, meaning there may be many variables that can impact on delivery, commercials outcomes and resources. The NEC promotes and enhances collaborative working and if used in this manner helps achieve greater cost certainty, delivery to agreed timescales and appropriate quality standards. The NEC is intended to be used and referred to throughout the project lifecycle, from preparing the business case to operation and maintenance of an asset. It incorporates robust real-time approach to change management that allows parties to deal with change quickly, effectively and in a collaborative manner, helping to avoid or reduce the impact on the overall cost and programme. NEC can also help save on legal fees. NEC4 provides a set of standard ready to use contracts which are designed to work best when they have not been amended – although they do of course provide the option for appropriate amendments to be made to suit specific circumstances and/or requirements, such as country specific laws. ®NEC 2023
  • 7. ®NEC 2023 “The NEC is capable of being a common contract for the whole industry.” “The New Engineering Contract contains virtually all of these assumptions of best practice, and others, which are set out in the Core Clauses, the main and secondary options.” “Public and private sector clients should begin to use the NEC, and phase out "bespoke" documents” “Use of the NEC by private sector clients should be strongly promoted by client and industry bodies.” The NEC was the first contract to introduce a collaborative approach to risk and contract management, include an adjudication process and written in plain language. In 1994 Sir Michael Latham’s report, ‘Constructing the Team’, highlighted and recommended the use of the NEC: This allowed NEC to be adapted and adopted across all industries often becoming the contract of choice for both small, low risk to large and complex projects internationally. The NEC has received Government Endorsement by the Government Construction Board, Cabinet Office UK and the Development Bureau, HKSAR Government, further instilling confidence in its use on public sector projects. INDUSTRY ADOPTION AND RECOGNITION
  • 8. NEC4 contracts: Promotes active management Provide clear documentation and outline of roles, responsibilities and processes Define timescales for all activities Instil a level of certainty of the project outcomes Allow to forecast the real effect of any change on time and cost Ensure an adequate and fair compensation model Support and encourage collaborative working Help minimise chances of formal disputes occurring ®NEC 2023 NEC BEST PRACTICE
  • 9. ®NEC 2023 When an organisation is looking to carry out construction or any other project work, they need to decide on the appropriate form of contract – often with the guidance of professional advisors. They and their advisors may have some experience of certain forms of contract, and be wary about using NEC either because they know little about it or, because of the many misconceptions that exist about it. The following high-level guidance on NEC contracts will provide decision makers and key business stakeholders, with critical information necessary to make an assessment as to which form of contract is right for their business and it is hoped, instil confidence in the philosophy behind the NEC contract. The guidance shows how the NEC contracts deal with issues of concern at various parts of an organisation – board oversight, finance, legal, procurement and operational. WHY CHOOSE NEC
  • 10. Confidence in the proposed contract outcomes NEC contracts have been used since 1993 with users reporting positive experience Governmental approval of the use of these contracts has been given in UK, Hong Kong and South Africa Many clients who have adopted NEC contracts use them repeatedly for their work A range of digital contract management systems exist which support the contract administration and provide accessibility and visibility of the contract processes GUIDANCE - BOARD OF DIRECTORS Governance process The Client appoints people to manage the contract and monitor performance - controlling cost, time and quality - on its behalf The Client’s contract manager has the authority to instruct a change to the Scope where necessary, e.g. if the Client’s requirements change Except where the conditions allow, the contract cannot be changed without written agreement of both Parties Certainty of outcome The contract restricts changes to time and price to a set of specific grounds and clearly defined processes – there are no provisions for global claims of additional cost and/or extension of time There are strict change and risk management procedures with clear timescales for action and sanctions for failures to act If there is an entitlement to change the price or programme, it is implemented at the time of the event, giving the Parties knowledge of cost outcome and projected completion of work
  • 11. ®NEC 2023 Deliver social outcomes Interfaces between the contracted provider and any third parties to the contract which may be needed to achieve the project objectives, can be specified by the Client and identified in the contract Key performance indicators can be incorporated into the contract which can be used to incentivise social outcomes by rewarding for achievement or improvements Provision to include climate change requirements and set targets with financial incentives for achieving or improving on them can be included Protect reputational risk Anti-corruption provisions are included, with stated consequences if any corruption is found to have taken place The Parties are prevented from disclosing any information obtained in connection with the work except as necessary to their duties under the contract The contracted providers can only publicise the work if the Client agrees The contracted providers use of Client material is restricted to that necessary for providing the work GUIDANCE - BOARD OF DIRECTORS (continued)
  • 12. ®NEC 2023 Financial controls The contract makes available a wide range of commercial, pricing and risk options to suit all circumstances, from lump sum to cost reimbursable The contract specifies a list of events which can give rise to a change in the cost and timing of the work Changes to the cost and timing of the work are assessed at the time of a specified event through a process designed to encourage the agreement of the effects of the change, with the aim of reducing the chance of disputes The liabilities of the Parties and the types of insurances required to cover these liabilities are stated in the contract A Project Bank Account option is available for UK contracts, allowing for faster payment whilst also providing security of payment for the supply chain Open book accounting provides transparency and helps forecast as well as authenticate cost when the cost reimbursable and target options are used The Client’s contract manager provides regular reports as prescribed by the Client in the Scope of the contract between them A value engineering clause has been added to the unabridged contracts which shares the benefits of any accepted proposals Target contracts contain a mechanism for sharing financial gains as well as over spends against the final amended target price The contract requires the contracted provider and the Client’s contract manager to prepare regular updates of the forecast outturn cost in consultation with each other on cost reimbursable and target based contracts The Client specifies its requirements and standards for financial reporting by the contracted provider within the scope, this enables integration with the Client’s systems Reporting and integration GUIDANCE - FINANCE DIRECTOR
  • 13. GUIDANCE - LEGAL COUNSEL ®NEC 2023 Confidence in legal outcome The NEC has been in use since 1993 by repeat clients. Its adoption was recommended by Sir Michael Latham and it has been endorsed by Governments There have been only a limited number of legal cases referred to the Courts with no significant adverse findings Clear dispute escalation and resolution processes and options involving Senior Representatives of the Parties, adjudication or a dispute board can be followed by either arbitration or a Court process Country specific Secondary Options are available for inclusion with provisions which incorporate legislative requirements Risk management Risks carried by the Client are clearly identified under core clause 6 as compensation events. There is a clear and strict process for determining the effect on both time and cost should an event occur A mandatory early warning procedure requires the early identification of all risks to time, cost and quality, followed by a review of the options for avoiding or reducing the effects, recording the actions which should be taken and by whom; the contract manager facilitates the process and takes the final decision Client requirements for managing risks, including health and safety and the protection of data are stated in the Scope Contract procedures oblige co-operation and encourage the agreement of change, aiming to reduce the chance of disputes GUIDANCE - LEGAL COUNSEL Liabilities The Parties liabilities, including those for damage or injury and the corresponding allocation of costs, are clearly set out in core clause 8 of the contract Liability for third party risks are allocated in the contract under core clauses 2, 6, 8 and additionally through the inclusion of secondary option Y(UK)3. Contract includes options for requiring the contractor to provide a performance bond or ultimate holding company guarantee Option for undertakings to others (warranties) Client states any limits to the liability of the contractor Procedures for termination and consequent liabilities stated in the contract Contract manager cannot relieve Contractor of its responsibilities
  • 14. ®NEC 2023 Procurement options A wide range of contracts to suit all types of work and contracting arrangements including alliancing, management contracting, design build and operate, as well as more traditional forms available in long and short versions Different pricing options provided to allow the selection of preferred pricing methods and risk allocation including, lump sum contracts, measured contracts, target contracts (sharing potential cost savings/overrun), cost reimbursable contracts The contract includes an option for identifying Conditions and Key Dates which enables the co-ordination of multiple contractors working on the same project to work collaboratively Secondary Options provide great flexibility to select appropriate provisions to meet procurement requirements, allocate risk, introduce sectional completion, incorporate an information model (BIM) among other needs Option for early contractor involvement – before design finalised - to work with the Client in completing design, assessing risks and incorporating buildability, etc. Design responsibility is by default retained by the Client but can be transferred in full or in part to the contracted provider GUIDANCE - PROCUREMENT/COMMERCIAL DIRECTOR
  • 15. ®NEC 2023 Contract controls The Client’s contract manager is in control of cost, time and quality Change control is managed by the Client’s contract manager, with an option to seek alternative assessments that provide an appropriate balance of time, quality and cost which meet the Parties needs Change to cost and time determined at the time of the event A wide range of incentives can be included in the contract, through the inclusion of Secondary Options for KPIs, sharing of benefits for cost savings, whole life cost improvements, meeting environmental targets, etc. Progressive finalisation and agreement of the audited cost in cost reimbursable and target contracts Assessment of the final payment is conclusive evidence of the final amount due unless either Party refers it to the dispute process Bonus for early completion and/or delay damages can be included within the contract to motivate timely completion No change can be made to the scope of work without an instruction by the contract manager GUIDANCE - PROCUREMENT/COMMERCIAL DIRECTOR (continued)
  • 16. ®NEC 2023 Contract management Active management of the contract by the Client’s contract manager allows the timely agreement and instruction of Tasks A regularly updated programme/plan shows future work and forecast dates to meet contract requirements The change event process allows continuous updating of forecast outturn cost and time to complete work An early warning register is maintained to identify and mitigate the risk to time, cost, quality and disruption to the Clients operational activities The contract manager controls the acceptance of subcontractors and key people The contracted provider is required to operate a quality management system which complies with the Client’s requirements Change control The contract lists the events which could give rise to a change in cost or completion of works and services Change in cost and/or completion established at the time of the event Some of the contracts include acceleration provisions. The procedures encourage collaboration and the agreement of change, aiming to reduce the chance of disputes The early warning process not only identifies potential risks to the project but also what actions to take and by whom The decision of the contract manager is final subject only to the dispute resolution process GUIDANCE - OPERATIONS DIRECTOR
  • 17. ®NEC 2023 Staffing requirements The contract can be managed by the Client using internal staff or contracted out to a specialist organisation The Client has a limited contractual role compared to that of the Client’s contract manager. The Client’s contract manager needs to have a thorough understanding of how the contract is operated The Client’s contract manager is responsible for the successful completion of the contract and will need to have the appropriate skills Training in the use of the contract including NEC accreditations, is available either in-house or in open courses to ensure that people have the appropriate skills GUIDANCE - OPERATIONS DIRECTOR (continued)
  • 18. ®NEC 2023 Short Contract Short contracts are an abridged version from the full contract and are used where sophisticated management techniques are not required, the work is straightforward and imposes only low risk on both Parties. Straightforward Work No restriction on value Low risk transfer No Early Warning Register Low administration burden No Accepted Programme Full Contract Complex Projects No restriction on value High risk transfer Manage Early Warning Register Sophisticated management tools Complex programme /plan requiring acceptance When to Use | Risk Level | Management DIFFERENCES BETWEEN THE FULL AND SHORT CONTRACTS
  • 19. Business Case Design Delivery Operation DRSC FC TSSC ECSC & ECSS SSC PSSC DBO ALC TSC & TSS FM & FMS & FMSC SC ECC & ECS PSC & PSS Other Contracts LOW Complexity & Risk HIGH The NEC suite of contracts caters for a wide range of works and services. The principal NEC4 contracts, short contracts and subcontracts can be broadly grouped into as shown in the matrix. The choice of contract depends on the type of project and its complexity and levels of risk. works services supply Choosing the right contract *to identify the acronyms, please hover over the relevant text and click the hyperlinks CHOOSING THE RIGHT NEC CONTRACT ®NEC 2023
  • 20. ®NEC 2023 Professional Service Contract Used to employ a consultant to undertake any kind of professional service Facilities Management Contract Used by a Client to appoint a Service Provider for a period of time to manage and provide any type of facilities management services. Engineering & Construction Contract Used to employ a contractor to undertake any kind of construction work including design responsibility Supply Contract Used for the procurement of high value goods and related service including design Term Service Contract Used to employ a supplier for a period of time to manage and provide a service NEC CONTRACT FORMS
  • 21. ®NEC 2023 Design Build & Operate Contract Used to for the appointment of a contractor for design, construction or modification and operation of assets Framework Contract Used for the appointment of one or more suppliers over a set term to carry out work or provide a service or goods on an ‘as instructed ’ basis using NEC4 contracts. Dispute Resolution Service Contract Used for the appointment of an adjudicator or dispute avoidance board member to resolve disputes under NEC4 contracts Alliance Contract Used to employ a contractor to undertake any kind of construction work including design responsibility
  • 22. ®NEC 2023 NEC MAIN OPTIONS NEC contracts provide a number of main Options to define the payment mechanism and the way in which the supplier’s financial risk is shared between the parties. This guidance will help to identify the appropriate choice of the Option which best meets the project objectives. The Options available, and the contracts they are used on, are set out below. They apply to the Engineering and Construction Contract (ECC), Professional Service Contract (PSC), Term Service Contract (TSC) and Facility Management Contract (FMC). The Supply Contract (SC), Design Build and Operate Contract (DBOC), Alliance Contract (ALC) and the short contracts have no main Options. The same Options are used in the respective subcontracts with the exception of Option F which only appears in the ECC. ECC terms Client Project Manager Contractor PSC Client Service Manager Consultant TSC Client Service Manager Contractor FMC Client Service Manager Service Provider ECS Contractor Contractor Subcontractor PSS Consultant Consultant Subcontractor TSS Contractor Contractor Subcontractor FMS Service Provider Service Provider Subcontractor The following criteria to be used to help identify the appropriate Option are described for the ECC or TSC contract. For other contracts substitute the terms in the following table. A Priced contract with activity schedule / Priced Contract with price list B Priced contract with bill of quantities C Target contract with activity schedule / Target contract with price list D Target contract with bill of quantities E Cost reimbursable contract F Management contract In addition, X22, the Early Contractor Involvement (ECI) Option can be used in ECC with either Option C or E.
  • 23. ®NEC 2023 NEC MAIN OPTIONS For relatively straightforward projects where  the Client requirements are well developed into either a performance based or output based Scope,  the project scope and requirements are well-defined and relatively stable,  the Client wants greater cost certainty and  the Client is confident of its Contractor’s willingness and ability to manage financial risk. ECC and PSC • The Contractor takes the responsibility for quantity measurement. • Lower involvement of Project Manager compared to other Options. • Provides a high level of cost certainty – Contractor takes the greater financial risk both positive and negative. • Payment is made for completed activities, priced on a lump sum basis, in the Activity Schedule. TSC and FMC • Payment is made on the basis of completed items in the price list which can be lump sum items or quantity related items or a combination of the two. • Contractor takes the risk of measurement for lump sum items, Client takes the risk of a change in the quantity related items which can increase or reduce the cost of the contract • Client must have flexibility within its budget to accommodate quantity change • Requires significant Service Manager involvement in measuring completed items. • Provides a fairly high level of cost certainty - Contractor takes the greater financial risk both positive and negative, but risk of quantity change lies with the Client. A Priced contract with activity schedule B Priced contract with bill of quantities For relatively straightforward projects where  the Client requirements are well-developed into either a performance based or output based Scope, but some elements of the project may be contracted on a design and build basis,  Contractor design provided for by lump sum elements of the bill of quantities,  the project scope and requirements are well-defined and relatively stable, subject to change on the final measurement of quantities  the Client has flexibility within its budget to accommodate quantity change and  the Client is confident of its Contractor’s willingness and ability to manage financial risk. • Client takes the risk of quantity change which can increase or reduce the cost of the project. • Requires significant Project Manager involvement in measuring quantities of work carried out. • Provides a fairly high level of cost certainty - Contractor takes the greater financial risk both positive and negative, but risk of quantity change lies with the Client. • Payment is made for the actual quantities of work carried out multiplied by the rates and prices in the bill of quantities.
  • 24. NEC MAIN OPTIONS For more complex or larger projects where  the Client requirements are well developed into either a performance based or output based Scope,  the project scope and requirements are fairly well defined with low likelihood of change – any change to requirements will change the target and  the Client and Contractor are willing to share project financial risk in a fully collaborative way. ECC and PSC • Contractor and Client share the risk of quantity changes. • Requires significant Project Manager role in assessing the cost of work carried out. • Provides a moderate level of cost certainty – Client and Contractor share the cost risk of the Contractor’s performance. • The Project Manager has visibility of the Contractor’s costs which assists in the financial assessment of compensation events and reduces the potential for claims and disputes. • Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share. TSC and FMC • Target cost is set by the price list, which can be a series of lump items or quantity related items or a combination of the two. • Requires significant Service Manager role in agreeing cost of work carried out. • Requires significant Service Manager involvement in measuring completed items. • Provides a moderate level of cost certainty - Client and Contractor share the cost risk of the Contractor’s performance and the risk of quantity changes. • The Service Manager has visibility of the Contractor’s costs which assists in the financial assessment of compensation events and reduces the potential for claims and disputes. • Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share. C Target contract with activity schedule C Target contract with activity schedule For more complex or larger projects where  the Client requirements are well-developed into either a performance based or output based Scope, but some elements of the project may be contracted on a design and build basis,  Contractor design provided for by lump sum elements of the bill of quantities,  the project scope and requirements are fairly well defined with low likelihood of change – any change to requirements will change the target and  the Client and Contractor are willing to share project financial risk in a fully collaborative way. • Client and Contractor share the risk of quantity change, except that significant quantity change can increase or reduce the target. • Requires significant Project Manager role in agreeing cost of work carried out. • Requires significant Project Manager role in measuring quantities of work carried out. • Provides a moderate level of cost certainty – Client and Contractor share the cost risk of the Contractor’s performance. • The Project Manager has visibility of the Contractor’s costs which assists in the financial assessment of compensation events and reduces the potential for claims and disputes. • Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share.
  • 25. NEC MAIN OPTIONS For projects where  the scope of the work cannot be determined in advance of the work commencing, such as for urgent or emergency works,  the Client requires flexibility to develop the works after the Contract Date,  there is a high level of uncertainty or when the Contractor's expertise is essential,  the achievement of other performance measures is of greater importance than cost and  an early start on Site is required. • Requires significant Project Manager role in establishing extent of work to be carried out. • Requires significant Project Manager role in agreeing cost of work carried out. • Provides a low level of cost certainty – Client takes the cost risk of the Contractor’s performance. • Payment made is the cost of the work plus the Contractor’s fee. E Cost reimbursable contract C Target contract with activity schedule For projects where  the Client requires flexibility to develop the scope of the work after the Contract Date,  the Client and Contractor collaborate in developing the scope of the work,  the Client requires greater control and involvement in the project and  an early start on Site is required. • Requires significant Project Manager role in agreeing forecasts and subcontracting of work. • Requires significant Project Manager role in agreeing cost of work carried out. • Low level of cost certainty – cost of contracted work lies with the Client. • Provides a low level of cost certainty – Client takes the cost risk of the Contractor’s performance. • Payment made is the cost of the work plus the Contractor’s fee. C/E Target or cost reimbursable contract with ECI (ECC) For complex or larger projects where  the Client design is not fully developed,  the Client requires flexibility to develop the works after the Contract Date and  the Client and Contractor share project financial risk in a fully collaborative way. • Requires significant Project Manager role in agreeing design, programme and target within stated budget during stage one. • Allows for stage two – the construction work – being cancelled at the end of stage one. • Requires significant Project Manager role in assessing the cost of work carried out. • Provides a moderate level of cost certainty if budget is adequate – subject to cost risk share if Target Option is chosen. • The Project Manager has visibility of the Contractor’s costs which assists in the financial assessment of compensation events and reduces the potential for claims and disputes. • Payment made is the cost of the work plus the Contractor’s fee, plus or minus the target share if a target Option is chosen, together with a share of the saving in the Budget.
  • 26. Contracts are designed modular, consisting of core clauses, main and secondary contract options, dispute resolution and jurisdiction-specific options, and additional contract conditions. NEC uses consistent language across all its contract suite. Roles such as Project Manager and Supervisor will vary with contracts. For example, TSC, PSC and DBOC use Service Manager and have no Supervisor. The obligation however remains constant. NEC CONTRACT STRUCTURE ®NEC 2023
  • 27. ®NEC 2023 NEC can be used anywhere in the world. It is written in plain English, supporting ease of use and translation. Optional Y Clauses allow specific provisions of local law to be incorporated into contracts. It is in use in the UK, Hong Kong, South Africa, New Zealand, Australia, France, Germany, Ireland, the Netherlands, USA and the UAE. In 2019 NEC delivered the venues and facilities for the Pan-American and Parapan Games in Peru. NEC can also be used in any sector. The contract was first developed in the construction sector under the leadership of the Institution of Civil Engineers, one of the world’s most respected professional bodies. Over the last three decades its use has spread into sectors as diverse as oil & gas, infrastructure, facilities management, software, telecoms and pharmaceuticals. WHERE NEC IS USED  Construction  Infrastructure  Energy  Hospitality  MMC  Oil & Gas  Pharmaceutical  Water  Waste View all the NEC Case Studies here
  • 28. ®NEC 2023 Dedicated hubs for particular NEC topics Connect, share expertise and best practice Access to NEC Spotlight podcasts Online space to bring together the NEC user community NEC COMMUNITY
  • 29. Training NEC offers a broad range of training products to help your teams manage NEC effectively and efficiently NEC Competency Framework Consultancy NEC provides expert support to companies and individuals working on projects using NEC forms of contract. We can: Help you select the right contract for your project Give specialist guidance on projects or to a team on the use of NEC and its processes Provide tender document review Advise on and review of the additional conditions of the contract (Z clauses) From a number of introductory courses allowing you to learn and understand each contract and how it can be used To our practical courses that focus on successful preparing and managing of the contract In addition, our advanced courses will allow your team to excel in their contract roles and demonstrate their knowledge and skills by achieving our gold standard accreditation NEC SUPPORT NEC IS WITH YOU THROUGHOUT YOUR FULL PROJECT LIFECYCLE ®NEC 2023
  • 30. ®NEC 2023 Contact information t +44 (0)20 7665 2446 e info@neccontract.com w www.neccontract.com Talk to one of our team to help start your NEC journey! GET IN TOUCH