NEC3 and NEC4

The NEC3/NEC4 requires a pro-active approach and more administration hours than the 'traditional' forms of building contract, such as the JCT or ICE. But it can save time and cost if things go wrong.

NEC3/NEC4 contracts encourage collaboration between the Employer/Client, Project Manager and Contractors. This offers a proactive approach to issues and problems that may arise.

If the NEC3/NEC4 is used correctly, there should be no storing up claims until after the works are completed – matters should be dealt with as they arise.

The new NEC4 suite of contracts was released on 22 June 2017 at the NEC Users’ Group Annual Seminar. NEC4 is intended to replace NEC3. However, as the NEC3 form will continue to be used in the industry until an eventual shift is made by users to the NEC4, this isurv section sets out the key features that are identical to both the NEC3/NEC4 alongside any new changes made in the NEC4, as well as a brief summary of the new contract forms (the new NEC4 Design Build Operate Contract and the new NEC4 Alliance Contract). The new NEC4 is definitely a case of evolution, not revolution. The NEC4 would be clearly recognisable to any users of the NEC3; the style, layout, terminology and key project management processes that run in NEC contracts remain.

This section is maintained by Melanie Tomlin of Charles Russell Speechlys LLP.

RICS journal article: Why NEC4 updates take a proactive stance

RICS journal article: The obligation to adjudicate under NEC

Feature: NEC4: reviewing the changes