This Practice Note considers the role of the ‘Project Manager’ under the NEC3 and NEC4 contracts. It looks specifically at the provisions of the NEC3/NEC4 Engineering and Construction Contract (ECC), but similar provisions are found across the suite. The Project Manager has a central role in the administration and management of an NEC contract. Although it is not actually a party to the contract, it is involved in almost every aspect of it. The Project Manager is vital to the success of a project. Who is the Project Manager? The Project Manager is usually appointed in the early stages of a project, often in the feasibility stages. It is appointed by the Client (called the ‘Employer’ in NEC3), for example under a Professional Services Contract (see Practice Note: NEC Professional Service Contract). The Project Manager is also named by the Client in part one of the Contract Data (although, as noted above, the Project Manager is not party to the contract). The Project Manager can either be a member of the Client’s own staff or

The NEC contracts contain detailed provisions for termination, setting out the grounds on which the parties may terminate and the consequences thereof (although they are less extensive than those found in the JCT contracts). Under the NEC contracts, it is the Contractor’s obligation to Provide the Works that is terminated, rather than the contract itself. This distinction is designed to ensure that the post-termination provisions contained in the contract survive termination. Even though the Contractor’s obligation to provide the works is terminated, in certain circumstances it may be required to pay the Client the additional costs of completing the works. This Practice Note refers to the clauses set out in the NEC3 and NEC4 Engineering and Construction Contract, but comparable provisions are found within the other NEC contracts. It should be read alongside Practice Note: Termination of a construction contract. For guidance specific to termination under the NEC Professional Service Contract and the NEC Supply Contract, see also Practice Notes: NEC Professional Service Contract and NEC Supply Contract respectively. Termination should always be considered very carefully. If the

This Practice Note considers the Contractor’s obligations in relation to time under the NEC Engineering and Construction Contract (ECC). It looks at commencement of work, the obligation to proceed regularly and diligently, the Contractor’s programme, events entitling the Contractor to an extension of time (known as Compensation Events), acceleration, and the obligation to complete by the Completion Date (including liability for liquidated damages for delay). It refers to clauses in the NEC4 ECC, but comparable provisions are found within the NEC3 and other NEC contracts. The Contractor’s key obligations in relation to time (as set out in clauses 20.1, 30.1 and 30.3) are to: • Provide the Works in accordance with the Scope • do the work so that Completion is on or before the Completion Date • (where Key Dates are being used) do the work so that the Condition stated for each Key Date is met by the Key Date The contract does not however include a specific obligation on the Contractor to proceed regularly and diligently with the works—although this is often added as a bespoke

This Practice Note looks at how variations are dealt with under the NEC Engineering and Construction Contract (ECC). For a more general discussion on variations, see Practice Note: What is a variation on a construction project? This Practice Note covers both the NEC3 and NEC4 editions of the ECC and focuses on variations instructed by the Project Manager where the Contractor is not at fault eg where the Client decides that additional works are required. 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 ECC uses the term ‘Employer’). The term ‘Scope’ is used throughout this Practice Note as per the NEC4 ECC to describe the document which specifies and describes the works which the Contractor is to carry out (in the NEC3 ECC 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

This Practice Note is an introduction to the forms of contract in the NEC suites of contracts—NEC3 and NEC4—and looks at the factors that should be considered in deciding which to use. It explains the six NEC3/NEC4 Main Options that the parties can choose between when using the NEC3 or NEC4 Engineering and Construction Contract (ECC). Note that NEC4 uses the term ‘Client’ rather than ‘Employer’ (the term which is used in NEC3): for ease of reference, where this Practice Note discusses both versions of the contracts, the term ‘Client’ is used to refer also to the Employer in the NEC3 contract. For a glossary of NEC terms, see Practice Note: NEC contracts—glossary. In deciding which of the forms of contract in the NEC3 or NEC4 family is most appropriate for the project at hand, the Client must consider the following: • its objectives in undertaking the project • any constraints upon it (eg time, cost or experience) or relating to the project itself • how the project will be funded • what risks are involved in the

The New Engineering Contract (NEC) has launched NEC Digital, a subscription-based online drafting platform intended to streamline and automate contract creation for construction project stakeholders. The platform provides smart tools, real-time collaboration features and contextual, tailored guidance to support users of NEC Contracts. NEC Digital aims to reduce risk and ensure compliance in contract creation. It enables secure collaboration among project team members and includes automated processes and standards-compliant submissions for construction contracting.

The New Engineering Contract (NEC) has published a version of secondary option X29 which has been produced for all NEC4 main and main subcontract forms. This follows the consultation on the clauses held earlier in 2022. The new option will be used to support, incentivise and tangibly demonstrate carbon reduction initiatives on future builds across the construction sector.

The New Engineering Contract (NEC) has published a new practice note, providing guidance on conflict avoidance clauses for NEC4 Engineering and Construction Contracts. These clauses outline a procedure for resolving disputes at an early stage through conflict avoidance panels. The practice note includes versions for contracts using dispute resolution Options W1 and W2, and the clauses can be used in any of the main forms of contract or subcontract within the NEC4 suite.

ARCHIVED: This Practice Note has been archived and is not maintained. NEC3 2013 edition The NEC3 contracts are a suite of construction contracts which focus on pro-active project management and the need for good communication and co-operation between the parties (see Practice Note: NEC contracts—introduction). The NEC published a new edition of its suite of contracts in April 2013—the previous edition having been published in June 2005. The 2013 editions made a number of changes to the 2005 form (some had been published previously, as supplements to the 2005 edition, and have now been subsumed into the 2013 edition), predominantly to take account of the 2011 changes to the HGCRA 1996, to include for project bank accounts as recommended by government fair payment guidance, and to update the compensation event provisions, amongst others. The NEC also published seven new 'how to' guides in the April 2013 suite which are designed to help complete the works information, service information and scope, and the communication forms in the Engineering and Construction Contract (ECC), Term Service Contract (TSC)

The NEC contracts promote a collaborative approach and are suitable for procuring a range of works. The NEC3 suite was published in 2005—and a further edition followed in 2013. The NEC4 suite was published in June 2017.

Agreement in relation to [insert brief details of the works/project] at [insert address of works] (incorporating (inter alia) the NEC4 Engineering and Construction Subcontract 2017 with January 2019 Amendments, October 2020 Amendments and January 2023 Amendments as modified and supplemented in the manner indicated in this Agreement and the Schedules hereto). This Agreement is made on the [insert number] day of [insert month] 20[insert year]. Parties 1 [insert name of the Contractor] (company registration number [insert number]) whose registered office is situated at [insert address of the Contractor] (‘the Contractor’), 2 [insert name of the Subcontractor] (company registration number [insert number]) whose registered office is situated at [insert address of the Subcontractor] (‘the Subcontractor’) Background (A) [insert name of the Client] (company registration number [insert number]) whose registered office is situated at [insert address of the Client] (‘the Client’) wishes for certain works, namely [insert brief details of the works/project] as more particularly described in this subcontract, to be executed. (B) The Client has appointed the Contractor and the Contractor agreed to be appointed in accordance with the terms and conditions

Agreement in relation to [insert brief details of the works/project] at [insert address of works] (Incorporating (inter alia) the NEC4 Professional Services Contract 2017 with January 2019 Amendments, October 2020 Amendments and January 2023 Amendments as modified and supplemented in the manner indicated in this Agreement and the Schedules hereto). This Agreement is made on the [insert number] day of [insert month] 20[insert year]. Parties 1 [insert name of the Client] (company registration number [insert number]) whose registered office is situated at [insert address of the Client] (‘the Client’), 2 [insert name of the Consultant] (company registration number [insert number]) whose registered office is situated at [insert address of the Consultant] (‘the Consultant’) Background (A) The Client wishes for certain works, namely [insert brief details of the works/project] as more particularly described in this contract, to be executed. (B) The Client wishes to appoint the Consultant and the Consultant has agreed to be appointed in accordance with the terms and conditions set out below to Provide the Service. Now it is agreed that: 1 Interpretation In this Agreement (including the recitals) words and expressions shall