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What Is the Difference between Nec3 and Nec4 Contracts

This companion of the NEC4 contract suite, written by an established neC expert and member of the neC Advisory Board, will be a valuable resource for anyone familiar with nec3`s provisions looking for a user-friendly comparison of changes between the two editions. With the release of the NEC4 contract suite in June 2017, there is a need to update those in the industry who are familiar with nec3 forms on changes to this widely used family of contracts. Gerard`s new book offers a clause-by-clause comparison between the NEC4 and NEC3 versions of the Engineering and Construction Contract (ECC) – the main construction contract for the suite – but the principles behind the changes are consistent in other forms. The book explains why specific changes have been made between NEC3 and NEC4, with a focus on the feedback the industry has given in recent years. Each ECC clause is displayed, starting with the basic clauses, then the main option and the side clauses, highlighting and explaining each individual change. The statements themselves cover both the reasons for the changes and the practical implications. A brief glossary of the new NEC4 terminology is also provided, which is especially useful for the reader to quickly understand the main differences. The writing style, as with the NEC contracts themselves, is simple and non-legalistic – meaning it`s a simple and useful reference that can be used quickly on a regular basis. As NEC4 is the future of the NEC suite now used worldwide, it is an invaluable resource for practitioners.

It is aimed at practitioners from a variety of backgrounds, including engineers, supervisors, quantity surveyors and contractors. In summary, I found the book to be an easy-to-digest way to learn more about the differences between NEC3 and NEC4. Stuart Ross, Arup The basic clauses (the main option listed above) are used in conjunction with the secondary options and additional terms of the contract. The Efficiency and Reform Group of the Cabinet Office in the UK (formerly OGC) has published generic Z clauses for the public sector for use with NEC3 contracts. In contracts, however, there is a general view that contractors have allowed a certain level of quotation, and what needs to be compensated unless they have to provide additional resources to set the price of a clearing event? Therefore, this problem persists even with the new compensation event clause. NEC 3 was released in 2005 and updated in 2013. The latest edition, NEC 4, was published in 2017 and was presented as an evolution rather than a revolution, incorporating input from industry experts, customers and contractors to solve common problems that have arisen between the parties in managing NEC3. The NEC3 is fully compliant with the AEC (Achieving Excellence in Construction) principles. The UK Cabinet Office Efficiency and Reform Group recommends the use of NEC contracts by public contractors in construction projects. Option clause X10 “Information Modeling” requires contractors to submit an information execution plan.

This refers to BIM, although it is called “information modelling”, and is useful because many contracts using NEC3 ECC required modifications via a Z clause to reinforce the need for a BIM execution plan that meets the customer`s requirements and in particular the UK government`s BIM mandate for the construction industry. With respect to payment, while the project manager must assess the amount due under nec3, and this has not changed in NEC4, there are now explicit obligations for the contractor to submit a request for payment by the next assessment date and obligations for the project manager regarding what to do if no payment request is received. The process has not fundamentally changed, but the presentation of commitments to the parties is clearer. The New Engineering Contract (NEC) or NEC Engineering and Construction Contract is a formalised system developed by the UK`s Institution of Civil Engineers that guides the preparation of documents on civil engineering, construction and maintenance projects for the purpose of obtaining tenders, awarding and managing contracts. [1] [2] As such, they legally define the responsibilities and obligations of employers (who commission work) and contractors (who carry out work) in construction information. The contract consists of two main parts: the contract data first part (data provided by the employer) and the contractual data part two (data provided by the contractor). Several approaches are included, making it a family of options. It is used in the UK and internationally in countries such as New Zealand, Australia, Hong Kong and South Africa. [3] YCW contracts facilitate the construction of buildings. . There are many reasons why industry and contract users benefit from the use of standard contracts: the new NEC4 contract suite was released at the NEC User Group Annual Seminar on June 22, 2017.

NEC4 is intended to replace NEC3. However, since the NEC3 form will continue to be used in the industry until users finally switch to NEC4, this isurv section describes the main features identical to nec3/NEC4 and any new changes in NEC4, as well as a brief summary of the new contract forms (the new NEC4 design and construction operating contract and the new NEC4 alliance contract). .