New guidance for NEC users on how to follow The Construction Playbook

NEC has published a series of free online articles to explain how NEC4 contracts can be used to deliver the aims of The Construction Playbook, the UK government’s guide for assessing, procuring and delivering public works projects and programmes.

First launched in December 2020 and updated in September 2022, the Playbook aims to improve efficiency, collaboration and innovation within the construction industry by setting out key policies and best practices.

The articles cover four of the 14 ‘key policies’ in the Playbook: delivery model assessments; effective contracting; early supply chain involvement; and risk allocation, payment mechanism and pricing.

Delivery model assessments

The Playbook states that the delivery model should be decided prior to identifying a contract solution. In other words, the contract solution needs to support the delivery model, not the other way round.

NEC provides a wide range of contracting options and flexibility is built into each contract type to allow for different approaches to be adopted. Article 1 explains how these options can be used to support the specific delivery model selected by the client.

Effective contracting

The Playbook encourages the use of contracts which drive better, faster and greener delivery while reducing risk and creating a more collaborative delivery environment.

Article 2 explains the features NEC contracts contain which drive better outcomes to projects and programmes, such as collaboration, early warnings, incentives, innovation, risk allocation, climate change and conflict avoidance.

Early supply chain involvement

The Playbook recognises how early supply chain involvement (ESI) can be used to deliver better project outcomes including value for money on a whole life basis.

Article 3 explains how NEC contracts can be used to support ESI through use of its suite of contracts and/or by using secondary Option X22 on early contractor involvement.

Risk allocation, payment mechanism and pricing

The correct allocation of risk is key to the success of any project or programme and a sensible view needs to be taken on who is best placed to carry risk, recognising that simply transferring a risk to the supply chain does not remove the risk or the likelihood of its occurrence.

Article 4 explains the inherent flexibility of NEC4 contracts and how they can be used to allocate risk between the parties providing the freedom to alter risk allocation to suit the nature of the project and capabilities of the parties.