Introduction to NEC3. Course agenda. Course objectives. Session 1 Background and underlying principles the concept

Transcription

1 Introduction to NEC3 Course agenda Session 1 Background and underlying principles the concept NEC characteristics NEC family including typical NEC arrangements Key NEC3 Engineering and Construction Contract (ECC) features Course objectives Delegates should: Understand the philosophy of NEC Appreciate the extent of the NEC family Appreciate a few key features of NEC contracts NEC3:Introduction to the NEC3 nec 04/2013 Page 1

2 A bit about NEC history What is the NEC? How the NEC was developed? The role of the Institution of Civil Engineers The NEC Panel Dr. Martin Barnes OBE NEC Creator The development of the NEC 1985: ICE Industry Review 1991: Consultative edition 1993: NEC1 1994: Latham Report 1995: NEC2 2005: NEC3 NEC characteristics NEC is a family of standard contracts, each of which has these characteristics Stimulates good management Can be used in wide variety of commercial situations, for wide variety of types of work and in any location A clear and simple document - using language and structure which are straightforward and easily understood NEC3:Introduction to the NEC3 nec 04/2013 Page 2

3 NEC characteristics Flexibility Multi-disciplinary Responsibility for design by either party Choice of pricing mechanisms from lump sum to cost plus Bolt on secondary Options that allow an Employer to build up the contract to suit Allocate risks to suit For international use Y(UK)1, Y(UK)2 X4 X3 X2 X1 W1 X6 X5 Z Y(UK)3 X16 X15 X14 X13 X12 X7 W2 X20 X18 X17 A B C D E F additional conditions jurisdiction-specific Options secondary Options dispute resolution Option main (payment) Option 1-9 core clauses Drafting style NEC characteristics Clarity and simplicity Ordinary language Minimal legalistic phrases Minimised subjective phrases such as fair, reasonable and opinion Reasons for decisions stated User friendly structure NEC3:Introduction to the NEC3 nec 04/2013 Page 3

4 Drafting style Drafting objectives try to keep sentence length below 40 words use words the readers are likely to understand use only as many words as are really needed prefer the active voice unless there is good reason for using the passive voice Drafting style Drafting objectives use the clearest, crispest, liveliest verbs use vertical lists to break up complicated text put points positively when you can reduce cross references to the minimum NEC characteristics Stimulus to good management NOT a contract for the bottom drawer! Each procedure designed to contribute Clear division of roles Up-to-date programme Early warning common sense risk management Compensation events NEC3:Introduction to the NEC3 nec 04/2013 Page 4

5 Supply High Project Complexity Low PSC PSSC Professional Services Professional Services Contract Short Contract business case SC & SSC Supply Contract & Supply Short Contract ECC Engineering and Construction Contract ECS Engineering and Construction Subcontract ECSC Engineering and Construction Short Contract ECSS Engineering and Construction Short Subcontract Framework Contract Adjudicator s Contract design construction NEC family TSC Term Service Contract TSSC Term Service Short Contract operation NEC family Guidance Notes & Flow Charts To support all the NEC3 contracts NEC Procurement and Contract Strategies A guide for users in application of NEC3 contracts in different procurement and contract strategies NEC family Project Manager Designer Supervisor Employer Contractor ECC Adjudicator AC Typical Employer designed arrangement Subcontractor ECS or ECSS Supplier SC or SSC NEC3:Introduction to the NEC3 nec 04/2013 Page 5

6 NEC family Project Manager Employer Adjudicator AC Supervisor Contractor ECC Typical design & build arrangement Subcontractor ECS or ECSS Designer Supplier SC or SSC Key ECC features The Employer, the Contractor, the Project Manager and the Supervisor shall act as stated in this contract and in a spirit of mutual trust and co-operation (10.1) Key ECC features Works Information (11.2(19)) specifies and describes the works or states any constraints on how the Contractor Provides the Works Site Information (11.2(16)) describes the Site and its surroundings NEC3:Introduction to the NEC3 nec 04/2013 Page 6

7 Key ECC features early warning duty to warn of events that may affect key project objectives requirement to discuss and agree best way forward sanctions if early warning not given encourages proactive risk management talk to each other, it s a good thing! Key ECC features time control - programme clear and objective requirement for a detailed programme with statement of resources regular updates which provide an essential tool for the parties to manage the project and to notify and manage the effect of any problems, delays, etc. Key ECC features Compensation events only way to change price and/or Completion Date all in one place (almost!) and treated in the same way cost: assessed at forecast change in cost time: forecast delay based on latest Accepted Programme all to tight and defined timescales NEC3:Introduction to the NEC3 nec 04/2013 Page 7

8 Summary Objectives met? Next steps? Online test Were the course objectives met? Delegates should: Understand the philosophy of NEC Appreciate the extent of the NEC family Appreciate a few key features of NEC contracts Online test NEC3:Introduction to the NEC3 nec 04/2013 Page 8

9 Need more information? Contact the NEC support team t: +44 (0) e: NEC3:Introduction to the NEC3 nec 04/2013 Page 9