NEC4: Free resources

NEC4 ECC Practice Note 5

Using a Dispute Avoidance Board for contracts covered by the Housing Grants, Construction and Regeneration Act 1996 This practice note has been prepared due to feedback from UK based users who would like to use an independent Dispute Avoidance Board (DAB), rather than using the parties’ Senior Representatives to resolve disputes in a contract where W2 would normally be used. The DAB would be similar to that contained in Option W3 of the NEC4 Engineering and Construction Contract (ECC), as part of a consensual dispute resolution process.

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NEC4 ECC Practice Note 4 - Assessing delays due to compensation events

This practice note has been prepared for the NEC4 Engineering and Construction Contract, as amended in January 2019. It is an updated version of the practice note originally issued following the publication of NEC4 in 2017.

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NEC4 Amendments

The NEC4 suite of contracts was published in June 2017. Following publication there has been discussion of and feedback from users and industry experts on the new features, forms and changes which were introduced. This feedback has been extremely positive overall and has provided many constructive suggestions as to how the contracts could be further enhanced.

To build on the constructive feedback and further improve the contracts the NEC has published a set of amendments. Users should consider reflecting these changes in their upcoming tenders or existing contracts as amendments.

ECC Clause 63.5: Assessment of Delay Due to a Compensation Event

A change has been made to clause 63.5 to embed good practice and provide further clarity around the process. In summary, the third paragraph has been replaced by:

“The assessment takes into account

  • any delay caused by the compensation event already in the Accepted Programme and
  • events which have happened between the date of the Accepted Programme and the
dividing date.”

This change was in response to user feedback after the ‘Practice Note 1’ published in in October 2017, where users asked for more formal provision within the contract to embed the good practice contained in the practice note.

This change also applies to the equivalent clauses in DBOC, ECS, PSC, PSS, SC, TSC and TSS.

ECC Clause 90.2: Termination Table

A minor change has been made to provide consistency with the procedures that apply in the event of termination by the Contractor due to the same ‘no fault’ reasons. No changes have been made to the amounts due as stated in the Termination Table.

This change also applies to DBOC, ECS, PSC, PSS and SC.

ECC Option C, D, E and F Clause 50.9 – Agreement of Defined Cost

Minor improvements have been made to clause 50.9 to clarify that the finalisation is for the Defined Cost for a part of the works giving closure to both the Client and Contractor in relation to these costs.

This change also applies to the equivalent clauses in DBOC, ECS, PSC, PSS, TSC and TSS.

ECC Option W1 and W2 – Senior Representatives

An addition has been made to Clauses W1.1(1) and W2.1(1) to allow either Party to replace their Senior Representative after notifying the other Party of the name of the replacement. This provides a formal process to change the Senior Representatives, which otherwise would require the mutual agreement of the Parties.

This change also applies to the equivalent clauses in DBOC, ECS, PSC, PSS, SC, TSC and TSS.

PSSC – The Consultant’s Contract Data – People Rates

Changes have been made to the PSSC to clarify the difference between work undertaken on a time charge basis as opposed to rates and lump sums.

The first change is to clarify that the Client has to select one of these options as the contract does not provide for a mixture of time charge and rates and lump sums to be used.

NEC4 Amendments

It is now also clear that where work is to be carried out on a time charge basis the Consultant includes people rates for its own people and people provided by a subcontractor and that these rates should be exclusive of the Fee. Where work is undertaken on a time charge basis the fourth bullet of clause 53.3 has been changed to make these rates subject to the addition of the Fee.

This change does not apply to any other contracts.

SC, ECS, PSS, TSS – Project Bank Account

In the SC and the main forms of subcontract (ECS, PSS and TSS) the form of Trust Deed and Joining Deed for secondary Option Y(UK)1 Project Bank Account has been removed as the Supplier or Subcontractor will become a member of a Project Bank Account created under a main contract.

A schedule of amendments is available for each contract on the NEC contract website www.neccontract.com.

Written by Matthew Garratt, NEC4 Drafter

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​NEC4 PRACTICE NOTE 3 - Implementing the requirements of Regulation (EU) 2016/679 (GDPR)

This note provides guidance on the information that needs to be included in an NEC contract which includes the processing of personal data as defined in the GDPR in order to comply with Article 28. 
NOTE: Similar provisions are needed in the Works Information or equivalent of an NEC3 contract which requires the processing of personal data. The terms should be changed to reflect the defined terms in the appropriate NEC3 contract.
If an NEC3 or NEC4 contract has already been awarded, the Scope (or equivalent) may need to be changed to add in any of these provisions that are not already covered by the contract. Such a change would be a compensation event.

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NEC4 ECC PRACTICE NOTE 2 - How to use the CIC BIM Protocol with NEC4

NEC has issued a practice note on how to use the CIC BIM protocol with NEC4. 

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Integrating BIM with NEC Contracts webinar >

The necessary interaction between the Supervisor and the Project Manager


Richard Patterson wrote an article for ICE’s Management, Procurement and Law journal about the interaction between Supervisor and the Project Manager roles in the NEC Engineering and Construction Contract (ECC).
 
The article explains the roles of the Supervisor and Project Manager under the NEC ECC, their shared responsibilities and how they should cooperate during a project.

Read full article

Management, Procurement and Law
Volume 170 Issue 5, October 2017, pp. 221-229
http://www.icevirtuallibrary.com/doi/10.1680/jmapl.2017.170.5.221#_i12

NEC4 ECC Practice Note 1 -  Assessing delays due to compensation events


NEC has issued a free Practice Note for assessing delays due to compensation events. The Practice Note has been prepared for use on the NEC4 Engineering and Construction Contract and the approach should be followed on other NEC4 Contracts.

This practice note has been revised. Download version 1.1 below.

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NEC4: the next generation whitepaper




This paper provides users with an explanation of some of the changes made to NEC3 contracts and the new contracts that have been created. It explains why they have been introduced and what the benefits are for users. It explains the changes across the full suite of contracts.

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NEC4 suite of contracts

The NEC4 suite of contracts is an evolution of NEC3. It reflects procurement and project management developments and emerging best practice, with improvements in flexibility, clarity and the ease of administration.

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