NEC3: Engineering and Construction Contract Guidance Notes

This guidance notes explain the background to the engineering and construction contract, the reasons for some of its provisions and provide guidance on how to use it. They cover usage of all the six A-F options. An introductory section explains NEC objectives, application and project organisation, followed by sections on contract strategy and preparing tender documents. The bulk of the book is then devoted to explanations of the clauses and schedule of cost components with worked examples of contract data forms provided.
 
OGC endorsement of NEC3;
 
Construction Clients' Board endorsement of NEC3
 
The Construction Clients' Board (formerly Public Sector Clients' Forum) recommends that public sector organisations use the NEC3 contracts when procuring construction.
 
Standardising use of this comprehensive suite of contracts should help to deliver efficiencies across the public sector and promote behaviours in line with the principles of Achieving Excellence in Construction.

Contents

• Contract Data
• Activity Schedule
• Bill of Quantities
Tender document in cost reimbursable contracts
• Works Information
• Site Information
• Inviting and preparing tenders
• Instructions to tenderers
• Part two of the Contract Data
• Assessing tenders
• Award criteria
• Procurement law
• General law
• Assessing target cost tenders
• Assessing design and construct tenders
• Assessing construct only tenders
• Qualified tenders
• Finalising the contract
• Creating the contract

Explanatory notes

• 1 General
• 2 The Contractor’s main responsibilities
• 3 Time
• 4 Testing and Defects
• 5 Payment
• 6 Compensation events
• 7 Title
• 8 Risks and insurance
• 9 Termination
• Dispute resolution Options W1 and W2
• Secondary Option clauses
• Schedule of Cost Components

Engineering and Construction Subcontract

• Appendix 1 Clause numbering system
• Appendix 2 Sample form of tender
• Appendix 3 Sample form of agreement
• Appendix 4 Model tender assessment sheet
• Appendix 5 Contract Data – worked example

OGC advises public sector procurers that the form of contract used has to be selected according to the objectives of the project, aiming to satisfy the Achieving Excellence in Construction (AEC) principles. This edition of the NEC (NEC3) complies fully with the AEC principles. OGC recommends the use of NEC3 by public sector construction procurers on their construction projects