The New Engineering Contract (NEC) is a suite of contract documents that are widely used in the procurement and management of construction, engineering, and related services. NEC contracts are designed to be flexible and adaptable, with a focus on collaboration and risk management. The contracts are divided into various options, each of which is tailored to specific project requirements. One of the key features of the NEC is its emphasis on collaboration between the parties involved in the project. The contracts require the parties to work together in a spirit of mutual trust and cooperation, with a view to achieving the project objectives. This collaborative approach is reflected in the contract's use of early warning and dispute resolution procedures, which are designed to encourage open communication and the early identification of issues. Another important aspect of the NEC is its focus on risk management. The contracts are designed to allocate risk to the party best placed to manage it, with a view to avoiding disputes and delays. The contracts also provide for the use of risk registers, which enable the parties to identify and manage risks throughout the project lifecycle. The NEC is also notable for its use of performance indicators, which are used to measure the performance of the parties involved in the project. The contracts require the parties to set targets for key performance indicators, such as cost, quality, and time, and to report on their performance against these targets. In summary, the New Engineering Contract is a suite of flexible and adaptable contract documents that are designed to promote collaboration and risk management in construction and engineering projects. The contracts emphasize the importance of early warning and dispute resolution procedures, as well as the use of risk registers and performance indicators. By providing a clear framework for the management of projects, the NEC helps to minimize disputes and delays, and to ensure that projects are delivered on time, within budget, and to the required quality standards.
NEC, construction, engineering, collaboration, risk management, performance indicators
New Engineering Contracts, often referred to as NEC, are a suite of contract documents tailored to the procurement and management of construction, engineering and other related services. It is a set of standard, professionally drafted contracts that provide a framework of terms and conditions for the protection of both parties involved in the project. This includes core clauses, such as the payment process and dispute resolution procedure. The document outlines the duties and liabilities of both parties, allowing for clarification of the scope of work and financial responsibilities. In addition, the standardises the process for contract changes and termination of the contract. It is designed to provide clarity and structure to the contracting process, thus reducing disputes and minimising the cost of litigation.
NEC contracts, construction procurement, engineering services, dispute resolution.
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