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New Contracts Soon. New Contracts Later.

20 Mar 2017

NEC, a contract provider to the construction sector, has revealed that a new suite of NEC contracts named “NEC4” will be available from 22 June 2017. The announcement was made at the Society of Construction Law Conference on 3 March 2017.

The NEC4 suite of contracts is described by NEC as “an evolution on NEC3 and it has been built from user and industry best practice learnings and has been specially designed to support innovation through digital advances and encourage collaboration across the world.”

The changes and their benefits

The NEC4 suite of contracts will include updates to the Engineering and Construction Contract and Subcontract, the Professional Services Contract and the Term Services Contract.

It will also include the addition of two new contracts:

  • The Design, Build and Operate Contract – This contract will allow the client “to procure a more integrated whole-life delivery solution. It reflects the increasing demand for contracts extending into the operational phase.
  • The Alliance Contract – This been created by NEC to support clients wishing to fully integrate a multi-party delivery team for large complex projects”. The NEC also notes that the potential benefit of using this contract includes a much deeper collaboration between all project partners, bound by common interests and reducing the potential for dispute.

NEC has indicated that the new suite of contracts brings NEC3 up to date and reflects procurement and project management developments, with improvements in flexibility, clarity and the ease of administration.

Highlights include that the new form:

  • reflects user feedback, industry developments and user best practice;
  • increases flexibility in each contract;
  • is designed for international use; and
  • provides better value, greater certainty and improved delivery.
contract purchased

What about JCT contracts?

Meanwhile, the Joint Contracts Tribunal (JCT) publishing of its 2016 Edition standard form contracts continues apace.

The next tranche of contracts will be available from 30 March 2017 including the Constructing Excellence Contract (CE 2016), the Framework Agreement (FA 2016), the Major Project Construction Contract (MP 2016) and Sub-Contract (MPSub 2016), the Measured Term Contract (MTC 2016) and the Pre-Construction Services Agreement for General Contractor (PCSA 2016) and for a Specialist (PCSA/SP 2016).

For further information in relation to NEC, JCT or any other standard form contract please contact Jan Rzedzian, Associate Solicitor in our Construction Team.

Call: 0191 232 8345

Email: jan.rzedzian@hay-kilner.co.uk