NEC4: Alliance Contract

Read this overview of the new NEC4 Alliance Contract >

The NEC4 Alliance Contract is a multiparty contract for the appointment of a number of partners to create an alliance to deliver a major project or programme of work. Contracting as an alliance offers a different approach to collaborative working between Clients and suppliers compared with other types of contract.  An alliance contract suits Clients who wish to enter into a longer terms collaborative contract with a number of suppliers in order to deliver a large scale multidiscipline project or programme of work.

The basis of the contract is that all parties work together in achieving the Client’s objectives and share in the risks and benefits of doing so. The potential benefit of using this contract is a much deeper collaboration between all suppliers, including consultants and contractors, bound by common interests and reduced grounds for dispute.




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NEC4 Alliance Contract
“This contract is designed for use on major projects or programmes of work where longer term collaborative ways of working are to be created.”

Core Clauses

1. General
2. The Alliance’s main responsibilities
3. Time
4. Quality management
5. Payment
6. Compensation events
7. Title
8. Liabilities and insurance
9. Termination, resoling and avoiding disputes

Option Clauses
Option X2: Changes in the law
Option X4: Performance guarantee
Option X9: Transfer of rights
Option X10: Information modelling
Option X18: Limitation of liability
Option X22: Early Alliance involvement
Option X26: Programme of work

Note Options X1, X3, X5-X8, X11-X17, X19-X21 and X23-X25 are not used

Option Y(UK)1: Project Bank Account
Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999

Option Z: Additional conditions of contract

Schedule of Cost Components

Contract Data
Part one – Client and Alliance Data
Part two – Data provided by each partner

Index