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NEC3 Contract Management

IPS have experience with NEC3 contracts and have worked with various clients to evaluate NEC3 programmes and documentation pre and post tender and have been involved with claims analysis for prolongation claims during large projects.

We have prepared complex NEC3 programmes for large infrastructural projects for Tender submissions and Tender analysis with various consortium in Ireland and the UK.

History of the New Engineering Contract

First Edition

January 1991 – Draft of the New Engineering Contract (NEC) issued. After consultation with a large number of organisations including employers, contractors, consulting engineers, surveyors and lawyers the first edition was finally published in March 1993.

July 1994 – Sir Michael Latham produced a report ‘Constructing the Team’. It recommended that the NEC should be adopted by both private and public clients and suggested it should become a national standard contract across the whole of engineering and construction work.

Second Edition

Following the Latham report, the Institution of Civil Engineers brought forward the publication of a second edition of the NEC. One of the changes recommended in the Latham Report was that the name of the main contract should be changed to Engineering and Construction Contract (ECC).

Since the development of the second edition, the ECC became widely used by those wishing to engage in ‘Constructing the Team’.

Third Edition

The third edition of the contract was developed to include project management tools such as risk registers and compensation event registers and to facilitate partnering, that was being requested by clients and their advisers.

Contract Structure

During its development, NEC developed a family of contracts including:

> The Engineering and Construction Contract
> The Engineering and Construction Sub-Contract
> The Professional Services Contract
> The Adjudicator’s Contract

The primary contract concerned is usually the Engineering and Construction Contract which supplies the main clauses common to the six Primary Options:

A. Priced Contract with Activity Schedule
B. Priced Contract with Bill of Quantities
C. Target Contract with Activity Schedule
D. Target Contract with Bill of Quantities
E. Cost Reimbursable Contract
F. Management Contract


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