The NEC Contracts| February 2010

The NEC is a modern day family of standard

contracts that truly embraces the concept
of partnership and encourages employers,
designers, contractors and project managers
to work together through both a powerful
management tool and a legal framework
to facilitate all aspects of the creation of
construction projects.
The NEC Contract is a legal framework of project
management procedures designed to handle all aspects of
the management of engineering and construction projects.
Its benets - stimulus to good management, exibility and
simplicity - can be applied to any project, large or small.
The NEC is one of a number of forms of contract that
are available for use by the Public Sector and as with all
procurement strategies careful consideration has to be
given as the appropriateness of the NEC compared to other
routes. EC Harris uses and recommends many different
methods of procurement.
THE NEC CONTRACTS -
PARTNERING HAPPY
EVER AFTER
Benets

Flexibility
It is a modular form of contract with a choice of
pricing options and risk allocation coupled with
a series of secondary options, which can be used
to tailor the contract to suit project specic
requirements. Design responsibility can also reside
with either party in whole or in part.

Clarity and Simplicity
The written language used is ordinary, with
limited use of legal terminology, simple lines of
communication and the use of subjective decisions
minimised.

Facilitator of Effective Project Management
The contract is a management tool which drives
clear and timely decision making; clearly allocates
responsibility and drives the foresighted
management of risk and change.

Encourages Collaborative Working
The contact requires the parties to operate in a
spirit of mutual trust and co-operation.
The NEC Contracts| February 2010
OGC Endorsement of NEC3
From the UK, NEC3 (the 3rd edition of the NEC suite) has
been endorsed by the Ofce of Government Commerce
(OGC) due to its compliance with the principles of
Achieving Excellence in Construction.
The NEC is the only contract, which has an OGC
endorsement, and due to this and its successful track record
its use is rapidly expanding in the public sector.
Market needs
In order to deliver the benets of the NEC, employers must
understand the NEC is a fundamentally different form of
contract requiring intensive management and a different
approach by the parties in terms of both documentation and
management requirements.
Commercial and project management
The roles and responsibilities under the NEC are different
to other forms of contract as are the management
processes, which the contract requires. EC Harris can
supply commercial and project management staff that have
expertise and experience in the practical delivery of NEC
contracts.
We can offer internal training and accreditation plus access
to expert advice and support. Our service also includes
Forensic Cost Auditing for the cost reimbursable and target
cost options. We deliver the proactive management of
change as required under the contract.
Procurement advice and contract
drafting / review
Clients are often required to use the NEC or decide to use
the NEC without having any experience in its use. They
understand what they are trying to achieve but do not
understand how the NEC should be developed and applied
to achieve these objectives. This often leads them to develop
a procurement strategy and contract documentation which
is inappropriate and actually in conict with the NEC leading
to discrepancies and disputes and most importantly a failure
to achieve the benets of the NEC.
OGC recommends the use of the NEC3 by public sector construction procurers
on their construction projects.
EC Harris has supported clients in the development of
procurement and contract strategies, which are designed to
meet client objectives using the NEC as an enabler.
In particular EC Harris can offer the knowledge and
experience to amend the contract to suit client requirements
without causing conict or grey areas. Access to EC Harris
experience and lessons learnt can be built into procurement
and contract strategies to avoid potential pitfalls and
problems.
We can advise on the selection of the most appropriate
main and secondary options and access standard forms
used as part of our contract administration processes as
well as ow charts and management processes.
EC Harris training and delivery
EC Harris has developed a range of training courses for the
NEC suite. The courses are typically tailored to suit client
specic requirements and take into account client specic
amendments to the standard forms.
The courses take the form of either interactive presentations
or workshops:

Introduction to the NEC family of contracts

Overview of the NEC

Contract Administration and Practice Application

Programming and Time Issues

Key Issues and Lessons Learnt

Prepare and Managing the ECC / TSC

Managing the Target Cost Contract

Open Book Cost Accounting and Cost Auditing

Tendering under the NEC.
Our training focuses on practical application of the contract
as opposed to theory. We share our experience and lessons
learnt with training tailored to suit the client, not off the
shelf . We are actually retained by the NEC to deliver
training on their behalf and have direct links into the drafters
of the Contract and the NEC User Group.
The NEC Contracts| February 2010
NEC positive outcomes
EC Harris has worked on more than 2000 projects that have
used the NEC conditions of contract. We have experience of
all of the Main and Secondary Options.
We are familiar with the entire suite of contracts and in
particular the Engineering and Construction Contract,
Engineering and Construction Short Contract, the
Professional Services Contract and Terms Service Contract.
We have been involved with the 3rd Edition of the NEC
since its launch and have provided support, assistance and
training to clients on its implementation.
EC Harris is the rst company appointed to advise the
Hong Kong Government on the implementation of the NEC.
We have been providing training in Hong Kong since 2006.
Our consultancy service and training can be given in English
and Cantonese.
EC Harris is an active member of the NEC User Group. We
deliver a wide range of training courses on the NEC Suite of
Contract.
We nd that this benets our clients directly through access
to the EC Harris way of using the NEC.

A comprehensive list of lessons learnt

A practical knowledge and application of the contract as
opposed to a theoretical approach

A tried and tested library of standard amendments

Client access to EC Harris group knowledge

A tried and tested training programme

Relevant information incorporated into our web enabled
service delivery system.
About us
EC Harris is a leading built asset consultancy generating
positive outcomes to clients business opportunities and
challenges. We help our clients getting the most from built
assets, working with them to plan and execute strategies that
optimise the construction, operations, use and ownership of
built assets.
Our global Contract Solutions team counts over 100
specialists operating from ofces in Asia, the UK, mainland
Europe and the Middle East. We provide strategic contract
advice and solutions to prevent, mitigate and resolve
construction engineering disputes. Senior members also
act as arbitrators, mediators, adjudicators and expert witness
on disputes across all sectors of the construction and
engineering industry internationally.
Contacts
Ivan Cheung
Partner
t +852 2263 7304
e ivan.cheung@echarris.com
Mike Allen
Partner
t +852 2263 7301
e mike.allen@echarris.com
echarris.com/asia
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