Contents
Genesis and philosophy of the NEC
Application – what is in a name?
The NEC family relationship for architects
Compatibility, ‘nesting’ of contracts and uniformity
2 Structure and content of NEC4
‘Pick-and-mix’ assembly of the contract
Clause hierarchy and contract layout
‘Designing’ the project-specific contract
Core Clause Section 1: General
Core Clause Section 2: The Contractor’s main responsibilities
Core Clause Section 4: Quality management
Core Clause Section 5: Payment
Core Clause Section 6: Compensation events
Core Clause Section 8: Liabilities and insurance
Core Clause Section 9: Termination
Main Option A: Priced contract with activity schedule
Main Option B: Priced contract with bill of quantities
Main Option C: Target contract with activity schedule
Main Option D: Target contract with bill of quantities
Main Option E: Cost reimbursable contract
Main Option F: Management contract
Secondary Option X1: Price adjustment for inflation
Secondary Option X2: Changes in the law
Secondary Option X3: Multiple currencies
Secondary Option X4: Ultimate holding company guarantee
Secondary Option X5: Sectional Completion
Secondary Option X6: Bonus for early Completion
Secondary Option X7: Delay damages
Secondary Option X8: Undertakings to the Client or Others
Secondary Option X9: Transfer of rights
Secondary Option X10: Information modelling
Secondary Option X11: Termination by the Client
Secondary Option X12: Multiparty collaboration
Secondary Option X13: Performance bond
Secondary Option X14: Advanced payment to the Contractor
Secondary Option X15: The Contractor’s design
Secondary Option X16: Retention
Secondary Option X17: Low performance damages
Secondary Option X18: Limitation of liability
Secondary Option X20: Key Performance Indicators
Secondary Option X21: Whole life cost
Secondary Option X22: Early Contractor involvement
Secondary Option Y(UK)1: Project Bank Account
Secondary Option Y(UK)2: The Housing Grants, Construction and Regeneration Act 1996
Secondary Option Y(UK)3: The Contracts (Rights of Third Parties) Act 1999
Secondary Option Z: Additional conditions of contract
Options W1, W2 and W3: Dispute resolution options
Part One: Data provided by the Client
Part Two: Data provided by the Contractor
Completeness of Contractor’s perception of Commercial Risk
Project Manager and Supervisor
Design submission and acceptance
4 Collaborative working with NEC4
Relationship to the building contract
Application of the PSC for any discipline of Consultant
Cultural and procedural change
Responsibility, authority and people organisation
Multidisciplinary and project-specific nature of the Scope
No conventional percentage fee basis
Fine-tuning a PSC Consultant’s role
The history of Secondary Option X12
Secondary Option X12: People definitions and scope of application
Implementation of Secondary Option X12 documents
Partners’ management responsibilities
Secondary Option X12: Multiparty collaboration clauses
6 In conclusion: decisive features of NEC4
Relative certainty and carpe diem