NEC4

UPDATE (Jan. 2018)

Reference:

 https://www.neccontract.com/getmedia/1b4d88a9-cc8b-4c06-8fb5-
d183f4b53b4e/NEC-NextGenerationWhitepaper.pdf.aspx
Introduction

 Builds on the success of NEC3

 The contracts meet new market demands, the expectations of
future users and complement Government Priorities
 Came into effect in UK in June 2017.

Characteristics:

 The NEC4 reflect procurement and project management

developments and emerging best practice.
 Improvements in flexibility, clarity and ease of administration.
New additions

NEC4 Design, Build and Operate Contract

(DBO) DBFO-Design Build Finance Operate Contract

Not only for D&B but also for operation, i.e. include facility management

NEC4 Alliance Contract (ALC)

The new suite:

 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
Aims:
 Support the changing requirements of users
 Stimulate good project management
 Improve clarity and simplicity

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

NEC is more like a business contract

Benefits

 Streamlined process and updated definitions

 Improved administration and reduces cost
 Greater clarity
 Provision for BIM and early contractor involvement
 Improve risk opportunity and risk management
NEC4: CHANGES AND IMPROVEMENTS

early contractor
involvement, higher
constructability
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.
Others:

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.