News | NEC Contracts

Singapore delegation visits Hong Kong to learn more about NEC contracts

A delegation of over 30 senior staff from Singapore government procuring entities, private developers, consultants and contractors visited Hong Kong in March 2023 to learn more about NEC contracts at first hand.

Organised by the Singapore Building and Construction Authority (BCA), the trip included visits to various NEC sites and meetings with the Development Bureau, Construction Industry Council, MTR Corporation, Architectural Services Department, Drainage Services Department, Turner and Townsend, and Gammon Construction Limited.

BCA said the visit had given their delegates a clearer understanding on the potential benefits, implementation challenges and practical experiences of NEC. BCA is actively promoting the adoption of collaborative contracting in Singapore, potentially including the use of NEC contracts.

The budget for the Spherical Tokomak for Energy Production (STEP) plant, which is shaped more like a cored-apple than a doughnut, is likely run to billions of pounds. The design will be based on UKAEA’s Mega Ampere Spherical Tokomak (MAST) experiment, which has been running at Culham for over 20 years.

The United Kingdom Atomic Energy Authority (UKAEA) procurement director Paula Barham says the authority has been using NEC contracts since the 1990s. “The NEC requirement on parties to act in a ‘spirit of mutual trust and co-operation’ aligns with our values of innovation, commitment, collaboration and trust, including openness, transparency and inclusivity.”

The authority now uses the full range of NEC4 contracts, including the NEC4 Professional Service Contract (PSC), NEC4 Engineering and Construction Contract (ECC), NEC4 Term Service Contract (TSC), NEC4 Facilities Management Contract (FMC), NEC4 Supply Contract (SC) and associated short forms.

New R&D building

For example, Kier has recently started work on a £27 million NEC4 ECC Option A (priced contract with activity schedule) for an 8,000 m² research and development building at Culham. Funded through a leaseback deal with Legal and General, the four-storey structure will have a fusion test rig hall, office space and carpark, and is due for completion in mid-2024.
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Barham and NEC Users’ Group chair John Welch have recently recorded an NEC Spotlight Podcast on UKAEA’s use of NEC, which is available via the NEC App at community.neccontract.com.