NEC3 contracts at the core of UK’s Magnox stations

NEC has been selected as the preferred contract supplier for Magnox Limited for its decommissioning programme of some of the UK’s nuclear power stations on behalf of the Nuclear Decommissioning Authority.

The NEC3 suite of contracts has become a cornerstone of the Magnox programme and has been used to great effect, from raising contract management performance standards to driving a cultural change. These contracts allow Magnox to work with suppliers over a period of time rather than for single specific projects.

In 2010 Magnox rationalised its supply chain using common NEC3 terms of engagement. The aim was to improve performance by reducing complexity and duplication. It also strived to improve clarity of purpose and establish shared goals with suppliers. Magnox chose to draw on the collaborative approach of NEC3 contracts rather than operating ‘turnkey’ projects that tend to be remote and cut off from organisational learning.

Rekha Thawrani, general manager for NEC, comments: “Following the government’s decision last year to grant EDF Energy planning permission for the first of its proposed two new nuclear power plants, Britain’s nuclear sector looks set to become one of the biggest users of NEC3 contracts. The NEC3 contract suite is already being widely used on the Nuclear Decommissioning Authority’s £3 billion a year programme to clean up the UK’s older nuclear sites, leading some in the industry to describe it as the ‘nuclear engineering contract."

“The NEC3 suite of contracts has become synonymous with the nuclear decommissioning industry and it fully supports the principles of NDA’s supply chain development strategy. The clarity and cooperative nature of the NEC3 suite of contracts has played a crucial role in Magnox’s desire to attract the best from its supply chain and become a client of choice”.

Peter Walkden, Commercial Director at Magnox Limited, comments: “NEC3 has raised our contract management performance standards and coupled with the transparency offered through the early warning process, helped our management teams through the complex task of decommissioning sites safely and cost-efficiently."

“The integration of suppliers through common NEC3 terms of engagement delivers value for both the company and the UK taxpayer. Perhaps most significantly, it also promotes a shared culture of continuous improvement, which in turn encourages timely and safe practices – both of which are prerequisites in the nuclear industry”.

NEC3 contracts have also fostered better communications at meetings, formal or informal, and via the web and presentations for Magnox. A further benefit of the integrated supply chain and strategic NEC3 frameworks has been the ability to have ‘shovel ready’ projects on the shelf whenever priorities change or funding becomes available.

Media contact
Fiona Lane, Beattie Communications, tel: 0113 213 0307, email: fiona.lane@onlybeattie.com