Changes to NEC4 recommended by NEC People forum

Changes to NEC4 recommended by NEC People forum

Changes to NEC4 recommended by NEC People forum

From our NEC People conference output in 2015 we gave a 23 point list of changes that as a group we wanted to see in NEC4. Of that list there were three items I was not precious about (but it was not just my list!) so for me there was a core of 20 items.

We know that list was considered in full by the authors of the contract and having just completed my thorough review of NEC4 ECC, I can confirm that over half of those points (11 out of 20) have specifically been incorporated into the NEC4 contract wording. I think we should be proud as a group that we have been able to influence this future generation of the contract.

Of the remaining 9 points not addressed, I would categorise these into 3 must haves and 6 nice to haves. These are:

Must haves (that should have been addressed and still need considering)

  • Assessing compensation events against the accepted programme (see my “Elephant in the room” article)
  • Key Dates, which attract undefined cost if missed can be instructed to be brought forward (accelerated) and then assessed by PM as a compensation event if they don’t agree with Contractor quote. Completion Date or Sectional Completion Dates cannot be instructed/assessed self via acceleration so why should Key Dates be?
  • Still no option for sectional Defect Dates – where large chunks of work are being handed over several months/years before Completion Date and liability for defects in those sections is still the Defect Date after ALL works are complete.

Nice to haves – would have been good to see and Clients may wish to consider as a Z clause

  • Requirement to have a programme review meeting to discuss the submission and speed up the understanding/response as to whether accepted or not
  • Opportunities focused upon in the same way as “risks” in the early warning process (or a parallel process)
  • Requirement for a regular commercial compensation event meeting (like the regular early warning meeting interval) to discuss each compensation event and look to move it forward in the notification / quotation / assessment / implementation process
  • Contract Data part 2 to introduce “Contractors Representative” who will be the authorized person to act as Contractor within the contract. Equally add mechanism for that person to be able to delegate actions.
  • allow an electronic contract administration tool that is mandated to be used identified into contract data part 1
  • Requirement to submit with programme “for each operation a statement of principal equipment and resources” changed – I rarely see this and think there is better wording to have to accompany a programme (more of a narrative explaining key differences from last submission)

Elements that have been changed in NEC4 from our suggestions:

  • Change of Risk Register to Early Warning Register and requirement for an early warning meeting interval to encourage regular meetings (clause 15)
  • Requirements for more specific reasons for rejection (clause 13.4)
  • Deemed acceptance of the programme if PM fails to respond and then fails to respond to a reminder (clause 13.3)
  • Clarification that non-implemented compensation event should be shown on programme, not just implemented ones (clause 32.1)
  • Clearer how proposed quotations should operate and then follow through to implementation (clause 65)
  • Value engineering clause added for option A and B so Contractor can benefit from suggested savings (clause 16.1and 63.12)
  • Obligation for PM to confirm on same piece of paper that something is a compensation event and request a quotation (clause 61.1)
  • Professional Services Subcontract added to family of contracts
  • Option A inclusion of People Rates in contract data part 2 to remove subjective elements of schedule of cost components
  • Definition of Working Area’s to account/clarify for remote working outside the working area (SCC 11)
  • Removal of subcontractor fee percentage

Please don’t forget to check out our NEC4 Overview Training Courses.

chevron_left
chevron_right