Industry Consultation On NEC4 Alliance Contract Now Open
NEC is looking to industry for feedback on the future of collaborative working, as it launches a consultation to shape its innovative new NEC4 Alliance Contract, uniquely designed to unite entire project teams on a single collaborative contract.
NEC has released the consultation draft of the new NEC4 Alliance Contract to encourage input from worldwide users and ensure its tailored and integrated risk and reward model approach meets the needs of the industry.
Aligned with the Government Construction Strategy and its commitment to Building Information Modelling (BIM) and Soft Landings, NEC4 has been sculpted in a move to inspire and enable project collaboration.
The Alliance Contract has been specifically created to support clients who wish to take a significant step forward by fully integrating the entire supply team for large complex projects into a single collaborative contract.
The basis of the contract will be that all parties work together in achieving client objectives, and share in the risks and benefits of doing so. The potential benefit is a much deeper collaboration between all project participants, bound by common interests and reduced grounds for dispute.
Ian Heaphy, NEC4 Contract Board member, explains: “The construction industry recognises the benefits that integration and collaboration can bring to the delivery of major projects and programmes of work.
“The NEC4 Alliance Contract will support those clients who wish to take a step forward by fully integrating their delivery team on a single contract – for all members of the supply chain, including the client.
“Working on a performance based contract - with shared risks, shared responsibilities and aligned objectives - the members of the Alliance work together as an integrated team, where an alliance board manages the alliance on behalf of the members.
“Any decisions of the alliance board need to be unanimous making this a truly collaborative approach.”
The consultation is now open and it will close on 30th November 2017. You can download the consultation document here.
In 1985 the Institution of Civil Engineers decided to lead a fundamental review of alternative contract strategies for civil engineering design and construction with the objective of identifying the need for good practice. After much discussion and consultation, this review resulted in the publication in 1991 of a consultative edition, and in 1993 of the first edition of the New Engineering Contract (NEC). Since then, in response to industry demands, further standard forms of contract have been produced, using the same principles as were used in the NEC first edition.
NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of the Institution of Civil Engineers (ICE), the owner and developer of the NEC.
The NEC family of standard contracts all have the following characteristics:
o Stimulates good management of the relationship between the two parties to the contract and, hence, of the work included in the contract
o Can be used in a wide variety of commercial situations, for a wide variety of types of work and in any location
o Is a clear and simple document – using language and a structure which are straightforward and easily understood