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NEA
GLOSSARY
Nuclear Energy Agency: A specialised agency within the OECD. The mission of the NEA is to assist its Member countries in maintaining and further developing, through international co-operation, the scientific, technological and legal bases required for the safe, environmentally friendly and economical use of nuclear energy for peaceful purposes.
GLOSSARY
National Examination Board in Occupational Safety and Health
NEC
GLOSSARY
New Engineering Contract (NEC) is an industry standard form devised by the NEC group which produces a standard form of contract known as the NEC 3 for the most recent editions.
NEWS
The New Engineering Contract (NEC) has announced that it has expanded NEC4 secondary Option X29 to formally incorporate nature alongside climate change within infrastructure and built environment contracts, with the revised clause unveiled at the NEC Annual Conference on 18 June 2026. Originally developed to embed measurable climate change and whole-life carbon performance requirements into contracts, Option X29 now also covers biodiversity net gain, habitat connectivity, drought resilience, sustainable urban drainage, canopy cover, soil health and carbon sequestration. The update introduces a Nature and Climate Hierarchy, requiring contracting parties to prioritise nature-based and nature-positive solutions before conventional engineered approaches while continuing to apply carbon optimisation principles throughout project delivery.
PRACTICE NOTES
This Practice Note looks at how defects are dealt with under the NEC3 and NEC4 Engineering and Construction Contract (ECC). For a more general discussion on defects, see Practice Note: Defects claims in construction. This Practice Note covers both the NEC3 and NEC4 editions of the ECC. For consistency, the term ‘Client’ is used throughout this Practice Note as this is the term used for the developer/employer in the NEC4 contracts (the NEC3 uses the term ‘Employer’). The term ‘Scope’ is used throughout this Practice Note as per the NEC4 to describe the document which specifies and describes the works which the Contractor is to carry out (in the NEC3 the term ‘Works Information’ is used). For a glossary of NEC terms, see Practice Note: NEC contracts—glossary. Where no distinction is made between clause numbers, the clause numbers throughout this Practice Note refer to both the NEC3 and NEC4 versions of the ECC. The key provisions in relation to defects are set out in clauses 41 to 46 (40 to 45 in NEC3). Key
PRACTICE NOTES
The NEC Professional Service Contract (PSC) is a long form consultant appointment published as part of the NEC suite of contracts. The NEC4 suite of contracts was published in June 2017. Amendments have been published in Jan 2019, Oct 2020 and a further set issued in January 2023—the 2023 changes contain contract-wide clarifications and new optional provisions that are relevant to the PSC and should be checked against any project-specific Contract Data.. The previous form, NEC3, last published in April 2013, was previously called the Professional Services Contract (note the subtle difference). This Practice Note covers both the NEC4 and NEC3 forms of the PSC—noting any changes in approach and different clause references where appropriate. This Practice Note refers to the ‘Client’ as this is the terminology used in the NEC4 suite; in the NEC3 suite the term ‘Employer’ was used. The PSC takes a somewhat different approach to other published forms of consultant appointment as it contains provisions which are akin to an engagement of a contractor, including detailed provisions in relation to programming and optional
PRACTICE NOTES
Overview of the NEC Professional Service Short Contract The NEC Professional Service/Services Short Contract, or PSSC, is part of the NEC3 and NEC4 suites of contracts (see Practice Note: NEC contracts—introduction). In the NEC3 suite of contracts, it was known as the Professional Services Short Contract. It has been rebranded as the Professional Service Short Contract in the NEC4 suite. It is an alternative within the NEC3/NEC4 suites to the longer form NEC3 Professional Services Contract/NEC4 Professional Service Contract (PSC), used for appointing consultants which is discussed in Practice Note: NEC Professional Service Contract. Until the introduction of the Professional Services Short Contract in the April 2013 edition of the NEC3 suite, the PSC was the only contract in the NEC3 suite which did not have an alternative ‘short’ form to use on simple projects. The NEC4 suite has retained the Professional Services Short Contract subject to some changes which are highlighted in this Practice Note, as well as some reordering of clauses and minor amendments to the drafting similar to those made in the other NEC4 contracts.
PRACTICE NOTES
CASE HUB ARCHIVED—this archived case hub reflects the position at the date of the decision of 1 December 2024; it is no longer maintained. See further, timeline. Case facts Outline UK merger investigation into the completed acquisition by NEC Software Solutions UK Limited of SSS Public Safety Limited and Secure Solutions USA LLC (previously part of Capita plc). The transaction involves horizontal overlap in the supply of essential software solutions to emergency service providers (including police forces, fire and rescue services and ambulance trusts) as well as transport services providers (such as TfL and Rail operators). Latest developments On 1 December 2022, the CMA issued its final report, finding that the transaction may be expected to result in an SLC in the supply of: (i) integrated communication and control services software used by control room personnel; and (ii) specialised duties management systems software to police forces.To remedy the SLC, the CMA decided that the most effect remedy was for NEC Software Solutions UK Limited to sell two business divisions. Parties • NEC
PRACTICE NOTES
Overview of the NEC Supply Contract The NEC Supply Contract, or ‘SC’, is part of the NEC3 and NEC4 suites of contracts (see Practice Note: NEC contracts—introduction). Most construction practitioners will be more familiar with the NEC3/NEC4 Engineering and Construction Contract (EEC), but where the employer wishes to purchase goods or plant and material in relation to a project, the NEC3/NEC4 Supply Contract may also form part of the documentation for a project. The Supply Contract could also be used as a standalone contract to purchase goods where a significant degree of management control is required (but, as with any contract, should be carefully considered to ensure that the terms do not conflict with any other non-NEC contracts used in relation to the same project). The NEC Supply Contract is designed to be used for the purchase of high value goods and related services. The NEC have drafted this with the intention that it be more even handed between the buyer and seller than parties’ own standard terms and conditions of supply are likely to be. The NEC3/NEC4
PRACTICE NOTES
Overview of the NEC Supply Short Contract The NEC Supply Short Contract, as the name suggests, is a concise form of contract for the supply of goods and services. It is part of both the NEC3 and NEC4 suites of contract, and is also known within the NEC suites as the SSC form. It is an alternative to the longer form NEC3/NEC4 Supply Contract (see Practice Note: NEC Supply Contract). The NEC3/NEC4 Supply Short Contract is intended to be used for the purchase of low value/risk items which do not require active management of the purchase. It may be used to purchase ‘standard commodities’, and the NEC3 Guidance Notes give the examples of the purchase of stationery, printer supplies, tools, raw materials etc. The Purchaser can choose whether the goods are to be delivered in a single delivery, or in batches (clause 23.1). The Purchaser may wish to order in batches if the precise dates for delivery or quantities are not known at the date of the contract, perhaps if the goods are for an ongoing construction
PRACTICE NOTES
What is the NEC Term Service Contract? The NEC Term Service Contract, or TSC, is part of the NEC3 and NEC4 suites of contracts (see Practice Note: NEC contracts—introduction). The NEC Term Service Contract is designed to engage a contractor for a set period of time, to manage and provide a service—this might include construction works, but can be used for the provision of other services. The NEC Guidance Notes give examples of its use including maintenance of highways in a particular area, providing security personnel for a site, maintaining a nuclear power station, and providing ambulance services to a group of hospitals—in other words, both ‘hard’ and ‘soft’ facilities management services (see Practice Note: What is Facilities Management Contracting?). Like the other NEC forms, it can be used in the public and private sectors and could be used for services of any value. The NEC Term Service Contract is not intended to act like the NEC3/NEC4 Framework Contract under which there is no guarantee of work. Rather, the Contractor will carry out work continuously as stated
PRACTICE NOTES
Overview of the NEC Term Service Short Contract The NEC Term Service Short Contract, or TSSC, is part of the NEC3 and NEC4 suites of contracts (see Practice Note: NEC contracts—introduction). It is an alternative to the longer form NEC3/NEC4 Term Service Contract (which is covered in a separate Practice Note: NEC Term Service Contract). The NEC3/NEC4 Term Service Short Contract can be used for contracts for straightforward work that does not require sophisticated management, and which imposes low risks on the employer and contractor. This could include contracts for cleaning or catering for example. Parties should choose between the NEC3/NEC4 Term Service Short and Term Service contracts based on the potential risks which could arise. If the risks are low, the NEC3/NEC4 Term Service Short Contract may be appropriate. The NEC3/NEC4 Term Contracts are distinct from framework agreements that do not guarantee any work. The Term Service contracts are for use where a contractor will be required to carry out work, whether on a regular basis, or on an ad hoc basis when called off by