Understanding NEC Contracts

Anyone involved in the running or administration of a construction project, which will include:

• Project managers
• Contract managers
• Commercial managers
• Quantity surveyors
• Planners
• Engineers
• Estimators
• Tender and Proposals Engineers
• Designers / Architects

At the end of the course those who have attended will understand:

• The different types of contract available within the NEC suite and when they will be most applicable
• The overriding philosophy and culture of the NEC contracts that are common to all
• All of the contract documents involved and their relative importance
• Each of the core principles of the contract which include defined terms, communication, early warnings, contractors responsibilities, payment, defects, liabilities and termination.
• The importance and significance of the programme and how it will be managed contractually for the life of the project
• How change will be managed, and in particular the principles of Compensation Events and the strict processes and timescales involved
• The key changes between NEC3 and NEC4

This is a detailed one-day course which gives an overview of the different types of contracts available within the NEC4 suite of contracts. The session will also identify the differences from NEC3 which whilst many attendees may still be using they will be switching to NEC4 for future projects. The NEC4 contracts are described as “evolution rather than revolution” so they are mostly subtle changes or enhancements from the NEC3 contract wording. The workshop explores in specific detail the Engineering and Construction Contract (ECC) which is the most commonly used form within the suite for managing a construction contract, which includes many of the core clauses which are common to the whole suite.

The course reviews the various options available within ECC in terms of being a lump sum contract, target cost or a cost reimbursable type contract as well as looking in detail at the intricacies of understanding and administering the contract for the benefit of all involved in running a project. Whilst the contract is written such that it should be easy to use and understand, it is different culturally from other forms of contract and parties can get into difficulties if they do not understand or administer the contract.

Anyone involved in the running or administration of a construction project, which will include:

• Project managers
• Contract managers
• Commercial managers
• Quantity surveyors
• Planners
• Engineers
• Estimators
• Tender and Proposals Engineers
• Designers / Architects

At the end of the course those who have attended will understand:

• The different types of contract available within the NEC suite and when they will be most applicable
• The overriding philosophy and culture of the NEC contracts that are common to all
• All of the contract documents involved and their relative importance
• Each of the core principles of the contract which include defined terms, communication, early warnings, contractors responsibilities, payment, defects, liabilities and termination.
• The importance and significance of the programme and how it will be managed contractually for the life of the project
• How change will be managed, and in particular the principles of Compensation Events and the strict processes and timescales involved
• The key changes between NEC3 and NEC4

1. Objectives of NEC contracts and range of Contracts available

• Fundamental essences that are common to all of the contracts
• Range of contracts available and when they will be applicable

2. ECC Contract and associated Contract Strategy

• Core clauses
• Options A-F
• Secondary Options
• Z clause amendments
• Key changes that NEC4 brings

3. Contract Data

• Contract data part 1
• Contract data part 2

4. Section 1 of the Contract

• ‘Spirit of mutual trust and co-operation’
• Defined and identified terms
• Communications
• Project Manager
• Ambiguities and inconsistencies

5. Early Warnings

• What early warnings are
• How they should be managed

6. Contractors Responsibilities

• Design
• People
• Working with Others
• Subcontracting

7. Time / Programme

• Level of detail required of a programme
• Acceptance of a programme
• Revising a programme
• Acceleration

8. Testing and Defects

• What is a defect?
• Acceptance of defects

9. Payment

• Definition of prices
• Definition of price for work done to date and activity schedule / bill of quantities
• Target cost share
• Schedule of cost components

10. Compensation events

• What is a compensation event?
• Notification
• Quotation
• Assessment
• Implementation

11. Adjudication

• The process and timescales involved

12. Summary

• Summary of workshop
• Open forum for questions

We run our Understanding NEC Contracts course regularly throughout the year.

Click on any of the tabs below to find out more about our NEC open course.

You can view full booking terms and conditions here.

If you would prefer to, or if your question is not answered below, you can just pick up the phone and call us on 0845 130 5714 or email [email protected].

Are you interested in running this course for your team or organisation?

Our NEC Contract courses can be delivered on an in-company basis for up to 15 people.

All in-company courses are tailored to meet the unique circumstances of the client organisation and delegates. We will take as much time as necessary upfront to understand your contract challenges and the scenarios which will be most relevant to your delegates.

We can put the focus on any area of NEC and make reference to your contracts / projects throughout the course.

On an in-company basis delegates get the opportunity to spend time consulting with one of the UK’s leading experts on NEC on what the contract means to them and their organisation.

From the outset we will provide you with expert advice and you will be assigned your own personal training adviser who will stay with you throughout the process. Every team is different so we will provide you with a tailored training programme, designed around your team’s needs and focused on your desired outcomes.

All courses are followed up by a full training evaluation report and certificates of learning for each delegate. For groups of up to 15 delegates per course, our in-company training is a very cost-effective way to develop your people and improve team performance.

Get in touch today for a full quotation to suit your budget.

To discuss your requirements in more detail with one of our friendly advisers please call on 0845 130 5714 or email one of the team at [email protected].

Alternatively you can complete the short contact form below.