NEC contracts focus on effective management processes, leading to more predictable project outcomes. If there is any error of measurement in the BoQ, then both parties will know how much extra is to be paid and received.

This option can either be Cost Reimbursable or pre-agreed Lump Sum. This Option is used with a Professional Services Contract for the appointment of consultants, paid on a time basis or pre-agreed cost. A new clause 74 gives the contractor the right to use client materials, but only to "provide the works". That right can also be made available to a subcontractor. Core Clause 8: liabilities and insurance The user guide on procurement and contract strategies helps clients to identify the best way of achieving their project objectives, taking into account constraints, funding, risk and asset ownership. It provides guidance on selecting the most appropriate procurement route and choice of available NEC4 contracts and available options to meet their specific needs. NEC contracts can also be intricate and detailed, requiring a thorough understanding of their provisions. The complexity of these contracts may necessitate expert knowledge or legal advice to ensure proper interpretation and implementation. The contracts also demand large amounts of data that can that often see people becoming data managers rather than commercial managers as they grapple with multiple spreadsheets to identify the data needed.Firstly, subcontractors will no longer be appointed until they are accepted by the client and, if required, the subcontract documents are also accepted. NEC3 did not require approval of subcontract forms if NEC contracts were used. NEC4 adds that NEC contracts "must not [be] amended other than in accordance with the additional conditions of contract". This means the client can set limits on acceptable amendments.

For the contractor, continuous monitoring should take place on the difference between the value and cost. This is slightly less important under cost contracts like option C,D &E. However, under option C it’s imperative the contractor keeps on top of their outgoings. For example, monitoring of, subcontract management, task efficiency and good Quality Management Systems (QMS) to keep defects to a minimum.

Resolving and Avoiding Disputes

This groundbreaking initiative aimed to stimulate innovation and streamline the project management process, departing from traditional norms. Its objective was to encourage the effective application of project management principles, eliminating any potential hindrances. This option is a cost reimbursable option. Unlike Option E, this option is tailored towards the management contractor procurement route. The starting point assumes the client has resolved its contract strategy and decided which contract to use, including the main and secondary options where relevant. Selecting suppliers The NEC4 Engineering and Construction Contract (ECC) Option A is the priced main works contract with an activity schedule. It can include any level of design, and is ideal for relatively straightforward projects where the client has a fixed budget and is confident of its contractor’s willingness and ability to manage financial risk.

Client termination for any reason now has its own secondary option clause, at X11. Clause 91.8 creates an additional right for client to terminate due to corruption. Option W: resolving and avoiding disputes Often used upon appointment of a contractor to carry out infrastructure, highways, buildings, and process plants. Can be used regardless of the level of design responsibility.

Background

NEC is famed for its use of short, plain English, and the new contracts incorporate changes in terminology. They are now gender neutral with some considered changes in emphasis. For example, the 'employer' is now the 'client', and 'works information' is now the 'scope'. This creates consistency across the suite.