 The NEC structure
The below diagram represents how the NEC3 suite of contracts can cover the life-span of a project from initial concept and design through to build and post-build management. Welcome to a better way of procurement NEC3 is a suite of documents which are fundamentally different in approach to many other procurement contracts on the market. Where traditional forms of contract can promote an adversarial relationship between contractor and client, the NEC promotes a partnering, collaborative approach which has a consistent record of delivering projects on time and on budget at its core.
NEC has been designed using the following three key characteristics: It stimulates good management of the relationship between the two parties to the contract and, hence, of the work included in the contract. --------------------------------------------------------------------------- It can be used in a wide variety of commercial situations, for a wide variety of types of work and in any location. --------------------------------------------------------------------------- It is a clear and simple document- using language and a structure which are straightforward and easily understood. Each contract comes supported by associated guidance notes and flow charts detailing exactly what procedures should be followed and by whom throughout the lifecycle of the project. The NEC story Originally launched in 1993, and then known as the 'New Engineering Contract', the NEC was praised for its collaborative and integrated working approach to procurement. The original box set of 10 documents was strongly recommended by Sir Michael Latham in Constructing the Team as the best example of a modern contract that embraced partnering. The second edition of the box set was launched in 1995, adding in several new documents to the family including a professional services and adjudicator's contract. This led to 10 years of extensive and successful usage with significant feedback from the industry on the contract in practice, This feedback was integrated into the development process and culminated in the launch of NEC3 in 2005. NEC3 contained many improvements and a number of new documents, including term service & framework contracts. The Term Service Short Contract followed in 2008, and in 2010 we added the NEC3 Supply Contract and the Supply Short Contract. NEC3 comes with a full endorsement from the Construction Clients' Board of the UK Cabinet Office, this recommends NEC3 for use on all public sector construction projects.
A global contract NEC is intended for global application and is being adopted for many multi-disciplinary projects by clients in nearly 20 countries. Where there are local laws in force which affect the usage of NEC3, we produce guidance and/or additional clauses which can be downloaded free from our website. We are pleased to support our users with 3 regional Users' Groups in the UK, Asia-Pacific and Australasian regions. Click here for our 'what is the NEC' brochure
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