Construction projects and risk management: NEC 4 – the evolution of contracts
For 12 years now the NEC3 contract has played a key role in delivering high profile projects through its reliance upon the values of proactive project and risk management procedures and the use of plain English.
Following the widely anticipated release of NEC4, we outline the key changes to be aware of and the potential implications these may have on the construction sector.
The next generation of NEC contracts, referred to as the NEC4 suite, has been described as an evolution of the existing NEC3 form, based on user feedback, rather than a revolution.
As such the traditional NEC values that have led to the successful delivery of many projects remain largely unchanged, although there are some interesting changes and additions. Five of these are reviewed within this paper.
Authored by Manoj Bahl, MSc MEng CEng MICE MCIArb, Senior Director, FTI Consulting and reproduced with his permission.
Case Study – Establishing Cause and Effect
In Claims Class Case Studies, we present a case study of a real situation for the reader to study and decide on the correct contractual outcome. The author’s opinion of the solution is presented underneath.
The project consists of a 36-storey hotel tower and a 36-storey serviced apartment tower constructed over a 4-storey podium and a 4-level basement car park. The basement and podium ‘footprint’ covers approximately 80% of the site.
Prior to the issue of tenders, the Employer arranged with the local municipality, that an area of land owned by the municipality in front of the Site could be used for the Contractor’s site establishment and this information was included in the tender documents.
The general conditions of contract are the Conditions of Contract for Construction for Building and Engineering Works Designed by the Employer, First Edition 1999.
The Employer engaged a separate contractor to…
Download the full case study on Establishing Cause and Effect.
We also published another case study earlier on cause and effect which you can read here.