New guidance on how to implement NEC4 under the Framework Alliance Contract (FAC-1) has been released at the NEC’s annual conference on Friday 21 June. The launch of this guidance marks the first time that specific guidance on how to optimise the integration of FAC-1 and NEC4 has been shared.
FAC-1 provides a multi-party contract that creates and implements collaborative framework and alliance arrangements. The contract has been recommended by the UK Government and can be used with any form of project contract or consultancy agreement.
FAC-1 can and already has been used successfully in conjunction with NEC contracts, allowing it to create relationships that support the enterprise approach promoted by ‘Project 13’.
Speaking at the conference, David Mosey, Professor of Law, King's College, and Peter Higgins, Chair, NEC4 Contract Board, shared details on how FAC-1 and NEC4 can be integrated to deliver optimal project outcomes for major construction projects globally, highlighting:
- How clauses in the NEC4 contracts can be used to support the objectives of FAC-1 and how provisions in FAC-1 can support the use of NEC4 contracts
- The material that needs to be incorporated in preparing FAC-1 for use with an NEC4 contract ·
- Instances where material in the FAC-1 contract can influence the preparation of a NEC4 contract and its management after being awarded
Both FAC-1 and NEC complement each other, and both require the parties to work in a collaborative and cooperative way. The guidance includes case studies showing how strategic FAC-1 alongside NEC contracts can lead to better programme and project outcomes.
NEC wishes to thank the Drafting Team, Professor David Mosey, Assad Maqbool, Peter Higgins and Ian Heaphy. NEC also acknowledges the support provided by the NEC4 Contract Board.
On 10 September, David Mosey and Peter Higgins will be hosting an interactive webinar to assist users in combining FAC-1 with NEC4 contracts and discuss case studies where the combination of FAC-1 and NEC contracts has resulted in improved outcomes. Click here to sign up for the webinar.