NEC contracts: best practice tools for risk allocation and management
BY RICHARD PATTERSON, BA(Cantab), MBA, CEng, MICE, procurement and NEC specialist, Mott MacDonald
NEC contracts provide an ideal basis to allow and encourage appropriate risk allocation and risk management through all stages of any project or service provision. This paper explains how NEC contracts can
• reflect the particular risk allocation intended by the parties to the contract, and
• help the parties manage risk after the award of the contract.
Partly because they are good for risk management, NEC contracts have anecdotally helped avoid disputes.
This paper includes an update of one published in November 2008 to include for the effect of NEC4 that was published in 2017. The fundamental NEC principles are not affected but ECC4 changes some language and clause numbers. NEC has also been drafted to be ‘gender neutral’ and that principle has been carried through into this paper.
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