22/07/24
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Newsletter #16:
Welcome to the Instruct newsletter. Bringing you weekly NEC knowledge, like ordering an Uber with the click of a button.
Don’t miss our news update at the bottom!
NEC Contracts are easy to read, structured, and logical in their approach. But unless you read the whole contract in one go, how are you meant to know what to do?
This week we list the steps you should take as an NEC PM in the first 30 days!
The starting date claxon has sounded, let’s begin…
Let’s do this clause by clause, (clause references in brackets):
Basics
Review the contract, identify which core, main option, and secondary option clauses are included
Maintain a structured folder with all contract documents, Scope, Site Information included
Set up trackers and forms when needed (Subject to Clause 13.2 requirements)
Distribute a list of requirements to everyone working on the contract
1 General
Check and understand requirements for Completion in the Scope. Track this throughout the contract. (11.2(2))
Identify if a communication system needs to be used, and use it (13.2)
Appoint delegates to cover periods of sickness or leave (14.2)
Issue the first Early Warning Register within 1 week of the starting date (15.2)
Hold the first early warning meeting within 2 weeks of the starting date (15.2)
Schedule a series of early warning meetings at the interval stated in the Contract Data (15.2)
2 The Contractor’s Main Responsibilities
For Options C,D,E,F - Agree meetings to discuss forecasts of Defined Cost (20.4)
Discuss and agree with the Contractor when design submissions will be made (and show on programme) (21.2)
Review the need for Equipment designs to be submitted for acceptance and discuss with the Contractor (23.1)
Check that everyone included in the Key People schedule has been provided by the Contractor, or discuss the need for replacements if not (24.1)
Assess need for Subcontractor acceptance and discuss with the Contractor (26.2)
3 Time
Review, assess, accept the Contractors first programme, or first updated programme if one is already in the Contract Data (31.1)
4 Quality Management
Ensure the Contractor submits a quality policy statement and quality plan within the timescales stated in the Contract Data (40.2)
5 Payment
Decide first assessment date (50.1)
Establish process for defining the amount due each month (50.2)
6 Compensation Events
Agree frequent meetings with the Contractor for discussing and agreeing compensation events (60)
X Clauses
If X4 included - Ensure Contractor provides guarantee within 4 weeks of the Contract Date (not starting date!) (X4.1)
If X10 included - Ensure Contractor provides Information Execution Plan within the period stated in the Contract Data.
If X13 is included - Ensure Contractor provides a bond within 4 weeks of the Contract Date.
If X14 is included - Check if the Client has made an advanced payment and include it in the first assessment.
Don’t forget to read the contract and check for additional requirements included in Z clauses. Has the Client added extra requirements, is the Contractor aware?
NEC news this week:
Super Sewer - The NEC-procured Thames Tideway Tunnel in London was structurally completed in March 2024. The eight year works programme ended with lifting a 24 m diameter concrete lid over a new 70 m Continue Reading…
Unfinished business: 30 years on, how relevant is the Latham report today? Continue Reading…
Netherlands Uses NEC - NEC contracts will be used to deliver a state-of-the-art plant for research and production of medical isotopes in the Netherlands. Continue Reading…
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Reading Recommendations
To understand more about how to prepare and manage an NEC contract, the following guidance documents are available.
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