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International Construction Law Review

NEC4 - STILL AT THE EDGE OF COLLABORATIVE CONTRACTING

Nicholas Downing

Partner, Herbert Smith Freehills, London

David Nitek

Partner, Herbert Smith Freehills, London

Michael Mendelblat

Professional Support Lawyer, Herbert Smith Freehills, London

INTRODUCTION

The launch of the new edition of the New Engineering Contract (“NEC”) has been one of the most eagerly anticipated events of 2017 in the construction and engineering sector. NEC3 has been the contract of choice for public sector projects in the UK for many years and is of growing influence internationally. We examine in this article whether the new iteration is a positive step.
NEC was first published by ICE in the early 1990s as an alternative to the ICE standard form of contract and has now taken over from it. It is well known for its collaborative approach, as exemplified by clause 10, commonly referred to as the “good faith obligation”.
There has been a gradual move across the industry towards more effective project management and the promotion of a more collaborative environment in standard form contracts. For example, the JCT’s Constructing Excellence form 2016 provides at clause 2.1: “The Overriding Principle … in the operation of this Contract in that of collaboration” and the I ChemE Red Book 2013 provides at clause 2.1: “The parties and the Project Manager shall co-operate with each other in the discharge of their respective obligations under the Contract with the aim of satisfactorily completing the Plant and the Works in accordance with the Contract” and at clause 2.2: “The parties shall deal fairly, openly and in good faith with each other.”
Common features of a collaborative environment include enhanced provisions for passing of information and a shared approach to risk management.

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