Peruvian Government signs official agreement with NEC Contracts and the UK government to translate and implement standardised contracting

NEC and The Ministry of Economy and Finance (MEF) for Peru have today announced a new partnership for the NEC suite of contracts to become the country’s preferred contract framework for infrastructure projects.

Representatives from all parties came together to sign a Memorandum of Understanding, leading the way to the publication of an official Spanish translation of the entire NEC4 Contract, user guides and training programmes.

The use of NEC Contracts began in Peru through the Government-to-Government initiative for the construction of the Lima Pan American Games facilities which opened in 2019. Following the success of this project, NEC has now been used on just under $9billion worth of public projects in Peru, most recently as part of the Public Investment Special Project of Bicentennial Schools.

MEF is now partnering with NEC and the UK government given the benefits that NEC contracts bring for national procurement: collaborative and transparent risk management, improve decision making and productivity as well as an already notably significant reduction in procurement times.

Speaking on the partnership, Global Head of NEC Contracts, Rekha Thawrani OBE said: “It is with great pleasure we sign this agreement with the Government of Peru and continue to further our already strong partnership.

The NEC Contract suite was designed to empower collaboration and foster long lasting relationships, so seeing this sentiment being shared across the world and being involved in positive local project outcomes is a great step in the NEC journey. The upcoming translation of the NEC4 contracts represents our commitment to ensuring ongoing support and wider adoption of the contracts across Latin America.”

Speaking on the UK and Peru collaboration, the British Ambassador to Peru, Gavin Cook OBE said, “This Memorandum of Understanding marks a milestone in our collaboration with Peru to support more transparent and efficient procurement, and to help boost investment in the country.

NEC Contracts are a standard in the UK and have provided many benefits, such as collaborative working, dispute reductions and innovation. Their adoption here has already driven huge benefits, and I’m delighted that together we are leading the way and pushing the first translation of NEC contracts as we integrate these into Peru’s procurement system.”

The Peruvian Government has a pipeline of over 70 infrastructure projects spanning transportation, healthcare, education, facilities, water and sanitation. To support the delivery of these, MEF is moving to NEC as a standardised international construction contract, paving the way for British companies to access the Peruvian market. The announcement of the partnership and translation of the NEC4 contract suite also aligns with the recent publication of the new Public Procurement Law, supported by the UK government, which has improved market access conditions by including UK principles on transparency, value for money and a reference to free trade agreements; and the set-up of the National Infrastructure Authority, who are responsible for delivering major government projects.

With the translated contracts, Peru will firmly establish itself as a key implementation country as well as a new centre of excellence in NEC expertise with the further support of NEC’s team in the UK.