Understanding the NEC4 ECC Contract

Synopsis

As usage of the NEC family of contracts continues to grow worldwide, so does the importance of understanding its clauses and nuances to everyone working in the built environment. Understanding the NEC4 ECC Contract uses plain English to lead the reader through the NEC4 Engineering and Construction Contract's key features. Chapters cover:

• The Contractor's main responsibilities the use of early warnings
• Contractor's design
• Tendering
• Quality management
• Payment
• Liabilities and insurance
• Termination
• Avoiding and resolving disputes and much more.

Common problems experienced when using the Engineering and Construction Contract are signaled to the reader throughout, and the correct way of reading each clause explained. The way the contract effects procurement processes, dispute resolution, project management, and risk management are all addressed in order to direct the user to best practice.

Written for construction professionals, by a practicing international construction contract consultant, this handbook is the most straightforward, balanced and practical guide to the NEC4 ECC available. An ideal companion for employers, contractors, project managers, supervisors, engineers, architects, quantity surveyors, subcontractors, and anyone else interested in working successfully with the NEC4 ECC.

Summary

Chapter 1: Introduction to the NEC4 ECC Contract

* Overview of the NEC4 ECC contract family
* Key principles and concepts, such as project management teams and early warning
* Real-world example: Using NEC4 for a major construction project involving multiple contractors

Chapter 2: The Contract Data

* Structure and content of the contract data
* Importance of accurate and complete contract data
* Real-world example: Dispute over incorrect contract data leading to project delays

Chapter 3: The Project Manager and Project Team

* Roles and responsibilities of the project manager, supervisor, and contractor
* Effective teamwork and communication
* Real-world example: Collaboration between project team members resolving a site access issue

Chapter 4: Risk Allocation and Insurance

* Risk sharing mechanisms in NEC4 contracts
* Insurance requirements and coverage
* Real-world example: Contractor's liability for weather-related delays mitigated through insurance

Chapter 5: Time and Programming

* Timetable development and management
* Early warning and proactive response to scheduling issues
* Real-world example: Contractor successfully completing project on time due to early warning mechanism

Chapter 6: Payment

* Payment schedules and milestones
* Assessment and certification of payment applications
* Real-world example: Contractor's payment withheld due to defective work, resolved through adjudication

Chapter 7: Contract Changes

* Process for initiating, evaluating, and implementing contract changes
* Impact of changes on time, cost, and risk
* Real-world example: Contractor awarded additional compensation for unforeseen ground conditions

Chapter 8: Disputes and Adjudication

* Dispute resolution mechanisms provided by NEC4 contracts
* Use of an adjudicator to make binding decisions
* Real-world example: Adjudication used to resolve payment dispute between contractor and client

Chapter 9: Suspension and Termination

* Grounds for suspension or termination by either party
* Procedures and consequences of such actions
* Real-world example: Contractor's suspension for violating safety protocols

Chapter 10: Special Features of NEC4 ECC Contracts

* Key performance indicators (KPIs)
* Use of pre-construction services and early contractor involvement
* Real-world example: Early contractor involvement leading to design improvements and cost savings