The Launch of NEC4 – June 2017 What You Need to Know…

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Following from our previous update in March we can confirm the launch date for NEC4 is June 2017.
So what do you need to know…
We have worked to summarise the key changes that have taken place from NEC3 to NEC4 and how they will affect Contractors and Sub-Contractors across the industry.

The key changes within the Engineering and Construction Contract (ECC) and the Engineering and Construction Subcontract (ECS) are outlined below:

  • The Risk Register has been re-named the ‘Early Warning Register’ and there are now default periods for early warning meetings.
  • There are new Programming changes which introduce a new ‘dividing date’ similar to those used with compensation events.  Where the project manager does not respond to programmes issued, the provisions provide for ‘treated acceptance’.
  • The term ‘Employer’ becomes ‘Client’ and ‘Works Information’ becomes ‘Scope’ in a bid to standardise terminology.

The ECC and ECS will further promote collaboration in the following ways:

    •  Identify opportunities
    • Early Contractor Involvement
    • Supporting information modelling
    • A new 4-week period for escalation of dispute negotiation
    • Dispute avoidance option W3
    • Financial agreement for payment applications and final accounts

 Additional new and updated provisions within the ECC and the ECS include:

    • Collaboration update – X12 has been changed from ‘Partnering’ to ‘Collaboration’ to reflect the intention.
    • Retention – X16 now includes for a retention bond as an alternative to withholding funds.
    • Confidentiality – The Introduction of new Confidentiality provisions.
    • Communication – Methods and the use of a communication system.
    • Quality – The issue of a Quality Management Plan.
    • Cost Component Schedules – The schedules have been simplified.
    • Fee Percentage – Consolidation to one fee percentage.

KJ Taylor Consulting will be delivering a training series following the official launch of NEC4 in June so have your diary at the ready.

In the interim; should you require any further support with NEC4 or any other commercial issues please don’t hesitate to get in touch.

 

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