Ground investigation services framework, Hong Kong

NEC is being used to deliver three years of public works ground investigations in Hong Kong. The Development Bureau (DevB) and Civil Engineering and Development Department (CEDD) of the Government of the Hong Kong Special Administrative Region of the People’s Republic of China jointly started a three-year pilot project to procure ground investigation services through an innovative framework procurement approach using NEC contracts in December 2024. 

DrilTech Ground Engineering Limited, Gammon Construction Limited, Intrafor Hong Kong Limited and Tysan Foundation Limited have been engaged under an NEC4 Framework Contract (FC), with work orders undertaken on an as-instructed basis using the NEC Engineering and Construction Contract (ECC) Hong Kong Edition. Worth around HK$400 million (£38 million), the NEC-based framework is designed to foster a sustainable and long-term partnership with the ground-investigation practitioners over the framework contract period and beyond.

The client’s representative is the CEDD chief geotechnical engineer/materials and testing, while the NEC project manager for each work order is the chief engineer of the relevant issuing office. EY is the client’s strategic procurement advisor and Turner & Townsend is supporting development of framework documents, tendering processes and contract administration.

The framework procurement approach has achieved significant early cost reductions compared to the original estimated project value, and the efficient issue of work orders has expedited project delivery. The predictable pipeline of ground investigation works of the selected public projects created by the three-year framework has also motivated the contractors to invest in specialised equipment, advanced training, innovative technologies and enhanced safety practices, resulting in continuous improvements in quality, productivity and cost-effectiveness.

The framework procurement was highly commended for the Future-Focused Collaboration Award in the 2025 NEC Martin Barnes Awards.

Encouraging collaboration

CEDD senior geotechnical engineer Patty Cheng says DevB and CEDD have been promoting NEC ECC and Term Service Contract (TSC) for public works contracts in Hong Kong for many years. ‘The main reasons for using NEC are to encourage collaboration among the project team and to limit the opportunities for the client and contracted parties to be placed in adversarial positions or disputes.’

She says NEC4 FC was chosen for the overarching framework contract document as it provided a ready-made solution for the selected procurement approach, being well established in other countries and regions as an effective document to govern framework contracts.

‘Collaboration is fundamental to NEC4 FC, fostering a culture of openness, trust and alignment among the client, framework contractors and project managers,’ says Cheng. ‘Clear communication platforms have been established, and joint meetings are maintained at the framework level. These initiatives ensure efficient communication, seamless information exchange and alignment of objectives among all parties.’

She says NEC ECC HK Edition Options C (target cost with activity schedule) and D (target cost with bill of quantities) were selected for the work orders for two main reasons. ‘Firstly, there is typically a degree of uncertainty in the potential scope of geotechnical investigation work, so a target cost contract is appropriate for risk sharing.  Secondly, the inclusion of a pain/gain mechanism encourages project team members to work closely together and proactively seek solutions to mitigate risk and manage construction cost.’ 

Cheng adds that framework contractors are further incentivised through performance-linked metrics in their NEC contracts, encouraging cooperation and long-term project delivery enhancements.

Enhancing efficiency

She says the NEC-based framework has enhanced efficiency by streamlining procurement and reducing tendering efforts. ‘CEDD has optimised the framework’s administration, particularly in issuing work orders and preparing quotations, by simplifying processes and standardising templates. These measures have reduced administrative burdens and improved consistency.’

Cheng says NEC’s early warning mechanism promotes proactive risk management by encouraging framework contractors to identify and report risks early. ‘At the framework level, a shared risk register and regular risk reviews facilitate the application of lessons learned across contracts, mitigating recurring and common risks. This collaborative approach ensures timely risk resolution, reducing potential project disruptions and associated costs.’

She says at work order level, pre-quotation discussions also provide an opportunity to collaboratively address risks and constraints, fostering a partnership approach. ‘By resolving issues early, expectations are aligned, and the likelihood of conflict is minimised.’ 

Cheng adds that in line with NEC-inspired collaboration, a centralised repository for lessons learned and best practices has been established to support continuous improvement. ‘Knowledge-sharing workshops and cross-project learning enable framework contractors and the client to exchange insights and leverage collective experience. These initiatives ensure that effective strategies are disseminated across the framework, benefiting all parties.’ 

Benefits of using NEC

• NEC-based framework procurement approach has achieved significant early cost reductions and expedited project delivery.
• NEC4 FC provided a ready-made solution for a framework procurement approach, being well established internationally as an effective document to govern framework contracts.
• NEC ECC HK Edition target cost Options C and D encourage collaborative risk sharing and cost management in work orders. 
• NEC’s early warning mechanism promotes proactive risk management by encouraging framework contractors to identify and report risks early.