Since its inception, the success of the NEC contract has been nothing short of spectacular.
The role of the NEC procurement
In working with Government and industry to ensure the construction sector is equipped with the knowledge, skills and best practice it needs in its transition to a low carbon economy, the NEC procurement has a significant role to play. Innovation must be promoted in the sector, including in the use of Building Information Modelling (BIM) and 4IR technologies in public sector construction procurement; and the synergy and fit in this regard with the collaborative nature of NEC contracts is obvious. The engineering construction industry strategy and forthcoming spend is a very significant investment and NEC contracts will play an important role in setting high standards of contract preparation, management and the desirable behaviour of our industry. Proper mind-set, attitude and behaviour aligned to best practice NEC processes will go a considerable way to achieving this.
The value of NEC Contract
NEC contracts are used successfully around the world in both public and private sector projects, and this is continuing at an increasing pace. NEC contracts are about better management of projects. This is an achievable goal and the rewards for the industry can be tremendous.
The NEC contracts are the only suite of standard contracts designed to facilitate and encourage good management of the projects on which they are used. Prior to the innovations of NEC, standard contracts were written mainly as legal documents best left in the desk drawer until costly and delaying problems had occurred and accompanied by costly litigation and arguments about who was to blame.
The language of NEC contracts is clear and simple, and the procedures set out are all designed to stimulate good management. Foresighted collaboration between all the contributors to the project is the aim, which will lead to effective risk evaluation, mitigation and management. The contracts set out how the interfaces between all the organisations involved in a project will be managed — from the Client through the designers and main contractors to all the many subcontractors and suppliers.
The NEC contract promote collaboration, effective risk management, trust and stimulate proper project management – this is a winning solution.