NEC4: 100 Questions and Answers

Kelvin Hughes has been a leading authority on the NEC contracts for over 20 years, during which time he has advised on numerous NEC based projects and provided over 1,700 NEC training courses at all levels from Introduction through Advanced to Masterclass. He was also Secretary of the NEC Users Group representing worldwide users of the contract, for ten years.

Contents Chapter 0 Introduction to the NEC4 Contracts Use of NEC4 Contracts What are the general differences between the NEC3 and NEC4 contracts? We are compiling tender documents for a project we have valued at approximately GBP500,000, and are wondering whether we should consider using the NEC4 Engineering and Construction Contract or the NEC4 Engineering and Construction Short Contract? What is the difference between the two, and is there any project for which the NEC4 contracts would not be applicable? We wish to engage a Contractor to carry out electrical testing within existing council housing stock over a period of three years. The work is fairly straightforward, can we use the NEC4 Term Service Short Contract or should we use the NEC4 Term Service Contract? We wish to purchase large quantities of rock salt for treating roads during winter periods. Is the NEC4 Supply Short Contract sufficient, or should we use the NEC4 Supply Contract because of the large quantities? When should we use the new NEC4 Design Build and Operate Contract? Do the NEC4 contracts comply with the requirements of the Housing Grants, Construction and Regeneration Act 1996, and the Local Democracy, Economic Development and Construction Act 2009? We wish to use the NEC4 Engineering and Construction Contract for a series of projects, and assume that the contracts include all the necessary ancillary documents to be incorporated into the contract, for example: Form of Agreement Performance Bond Parent Company Guarantee Advanced Payment Bond Novation Agreement Collateral Warranty Retention Bond We wish to appoint a Contractor to carry out some work with the Client's design team on pre-construction value engineering and buildability options for a proposed project, for which we may eventually appoint him to be our Contractor to build the project, or we may decide to carry out a selective tendering process to select our Contractor, can we do this with an NEC4 contract? We have been using the NEC3 Engineering and Construction Contract for a number of years, and have used all the Main Options except Option D (target contract with bill of quantities), and wonder, why anyone would use that option? When would it be appropriate to use Option E within the NEC4 Engineering and Construction Contract? We would like to use the NEC4 Engineering and Construction Contract to carry out a project using Construction Management as a procurement method. We note that Main Option F is a Management Contract, but there is no Construction Management Option? We wish to use the NEC4 contracts for a number of international infrastructure projects in various locations around the world, is that possible? Roles What is the role of the Project Manager on an NEC4 Engineering and Construction Contract, and does he have an obligation to act impartially between the Parties? What construction discipline is best suited to being the Supervisor on an NEC4 Engineering and Construction Contract, and how much "supervising" does the Supervisor actually have to do? General Under Clause 14.2 of the NEC4 Engineering and Construction Contract, the Project Manager or Supervisor may delegate actions. What does this mean? Is there anything that the Project Manager or Supervisor cannot, or must not, delegate? What is the meaning of the wording in Clause 10.1 and 10.2 of the NEC4 contracts, the parties named "shall act as stated in the contract" and "act in a spirit of mutual trust and co-operation"? What is the order of precedence of documents in an NEC4 contract? What does the term "Working Areas" mean in an NEC4 Engineering and Construction Contract? Presumably this is simply, the Site? How do the NEC4 c