NEC Contract: Solution for every known difficulty of traditional contracts

NEC Contract

Look at NEC Contract for a bundle of contracts for Engineering and Construction Projects

History of NEC Contract

The NEC contract is a unified and multidiscipline option It covers both construction and engineering professional services.

As far back as 1985 the documents were first conceptualised. The Council for the London Institution of Civil Engineers’ Legal Affairs Committee proposed for it to ‘lead a fundamental review of alternative contract strategies, with the objective of identifying the needs for good practice’. There was a dire need for an updated progressive approach to project management. This was according to many building and engineering professionals. NEC2 was published in 1995.


Now forward thinking organisations are using the NEC family, embracing its revolutionary ethos of non-adversarial negotiation.

The updating of the existing NEC contracts by the NEC Panel has been an unfolding from experience. Three original key objects remain in place, that is flexibility, impetus to good project management and clarity.  Each publication of the suite should be drafted so that wherever possible the same text is used to describe methods which are common across the family. All publications should be edited at the same time to avoid the problem of contracts revised earlier being misaligned with those revised later.  The Achieving Excellence in Construction (AEC) should be closely adhered to by the NEC suite of contracts. These principles are laid down by the UK Office of Government Commerce (OGC). Plus the NEC3 contract appeases the Achieving Excellence in Construction principles. It is also endorsed by the UK Office of Government Commence for use in public sector construction projects.

The Engineering and Construction Contract (ECC)

Three pivotal components are enveloped by The Engineering and Construction Contract (ECC). Best Practice Guideline, choosing an appropriate form of contract for engineering and construction works and process/project management/risk management. Therefore it is more than just a contract. It effectively provides a “real time” contract management process which can address  organisational boundaries and operation across multiple locations. The “when” and “what” of management process is dealt with in the form of guidance, compensation events, early warnings and supporting documents. The “how” and the “who” (project manager, contractor and supervisor) is also clearly identified.

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History of NEC Contract