Ground Investigation Services Framework, 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 have used a NEC4 Framework Contract and NEC Engineering and Construction Contract (ECC) Hong Kong Edition to fundamentally reshape how ground investigation services are procured across the territory's public works programme. The three-year pilot framework, worth around HK$400 million (£38 million) and launched in December 2024, replaces project-by-project tendering with a sustained, performance-linked partnership model that has already delivered significant cost reductions and was highly commended for the Future-Focused Collaboration Award at the 2025 NEC Martin Barnes Awards. 

A new model for ground investigation procurement

Four specialist contractors - DrilTech Ground Engineering, Gammon Construction, Intrafor Hong Kong and Tysan Foundation - were appointed under the NEC4 Framework Contract (FC), with individual ground investigation work orders issued on an as-instructed basis using the NEC Engineering and Construction Contract (ECC) Hong Kong Edition. EY acted as strategic procurement adviser to the client, with Turner and Townsend supporting framework documentation, tendering and contract administration. 

The framework was designed to address a recurring weakness in traditional ground investigation procurement: individual project-by-project tendering provided contractors with little incentive to invest in specialist equipment, staff training or innovative methods, and generated significant administrative overhead on both sides. By creating a predictable pipeline of work across multiple public projects over three years, the NEC4 FC gives framework contractors the commercial certainty needed to make those investments. The result has been measurable improvements in quality, productivity and cost-effectiveness from the outset, alongside significant reductions in procurement overhead through standardised templates and streamlined work order processes. 

Target cost options and shared risk across the programme 

Patty Cheng, Senior Geotechnical Engineer at CEDD, says NEC ECC Hong Kong Edition Options C and D were selected for individual work orders because they are well suited to the inherent uncertainty of geotechnical investigation scope. '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. The inclusion of a pain/gain mechanism encourages project team members to work closely together and proactively seek solutions to mitigate risk and manage cost.' Framework contractors are further incentivised through performance-linked metrics embedded in their NEC contracts, driving continuous improvement across the programme rather than optimising for individual contracts in isolation.

Cheng says NEC's early warning mechanism has been particularly valuable at framework level. A shared risk register and regular reviews across all active work orders enable lessons from one contract to be applied quickly across others, reducing the recurrence of common risks. Pre-quotation discussions at work order level also allow risks and constraints to be addressed collaboratively before scope is fixed, minimising the likelihood of disputes arising later. A centralised knowledge repository and cross-project learning workshops support the continuous improvement culture that the framework was designed to create. '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.' 

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

Patty Cheng, Senior Geotechnical Engineer, Civil Engineering and Development Department, HKSAR

Benefits of using NEC 

• The NEC4 Framework Contract provided a proven, internationally established structure for multi-contractor framework procurement, enabling a sustained partnership model that replaces inefficient project-by-project tendering across Hong Kong's public ground investigation programme.
• A predictable three-year pipeline of work under the NEC4 FC has motivated framework contractors to invest in specialist equipment, advanced training and innovative technologies - improvements that benefit the entire programme rather than individual contracts. 
• NEC ECC Hong Kong Edition target cost Options C and D, with pain/gain mechanisms, align client and contractor incentives at work order level, encouraging proactive collaboration on risk and cost management from the moment a work order is issued. 
• NEC's early warning mechanism, applied at both framework and work order level with a shared risk register and cross-project lessons, reduces recurring risks and associated costs across the programme.