{
  "query": "NEC4 contract unknown unknown risk management benchmarks construction",
  "raw_results": [
    {
      "url": "https://www.neccontract.com/getmedia/517c3d32-df47-4b53-b515-9faf3b377d5a/Richard-Patterson-Risk-Management-Paper.pdf?srsltid=AfmBOop8s7i9x9uHueVFbn51I7zLbW_-tPbhGBbcyqBz6QhqH3Qj4Jmz",
      "title": "[PDF] NEC contracts provide an excellent basis for risk management, both ...",
      "content": "Contract (ECC) • NEC Engineering and Construction Short Contract (ECSC) • NEC Engineering and Construction Subcontract (ESC) • NEC Engineering and Construction Short Subcontract (ECSC) • NEC Professional Services Contract (PSC) • NEC Professional Services Short Contract (PSSC) • NEC Term Service Contract (TSC) • NEC Term Service Short Contract (TSSC) • NEC Supply Contract (SC) • NEC Supply Short Contract (SCC) . NEC4 included also: • NEC Professional Services Subcontract (PSS) • NEC Design, Build and Operate Contract (DBOC) • The multi-party NEC Alliance Contract. The NEC’s approach to risk is explained in this paper by reference to the ECC. This is the member of the NEC family appropriate for implementation of a significant project and can include (any level of) design and construction. [...] management of risk throughout the period of the contract. 1 The flexibility within the ECC regarding payment is delivered by using the term ‘Prices’ in the core clauses, irrespective of the main option chosen. The clauses in each main option include a differing definition of ‘Prices’. 2 NEC4 Preparing and engineering and construction contract, Volume 2, ice publishing, 2017 3 In the cost-based options (C, D, E and F), the bidder bids fee percentages that are applied to its ‘Defined Cost’ and so must cover for profit, any element of its real cost not included in the Defined Cost and the components of the defined ‘Disallowed Cost’. Even in the ‘cost reimbursable option E’, the bidder has to take the risk that its tendered fee percentages are not sufficient to cover these costs. 4 More [...] and can include (any level of) design and construction. It is a contract between a ‘client (ECC4) or employer (ECC3) and a ‘contractor’. (The term ‘client’ is used throughout this paper). Thanks to the commonality of the language and principles across the entire family of NEC documents, many of the principles discussed here apply also to the other NEC main (not ‘short’) contracts in the NEC family, namely the PSC, the TSC and the SC. The structured approach to 1 Using NEC contracts to manage risk and avoid disputes, Richard Patterson, Proceedings of the ICE, Management, Procurement and Law, 2009, No 4. 2 ‘NEC3 to NEC4 – evolution, not revolution; some fixes and some good ideas!’, ICE’s Management Procurement and Law, December 2017 and on NEC website from 26 Feb 2018 Risk Management,",
      "score": 0.6356076,
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    },
    {
      "url": "https://www.lexisnexis.co.uk/legal/guidance/nec-contracts-risk-management",
      "title": "NEC contracts—risk management | Legal Guidance - LexisNexis",
      "content": "The NEC3 and NEC4 contracts encourage an ongoing, proactive approach to the Monitoring and management of risks, and anyone administering or working under these contracts needs to pay close attention to the risk management processes. This Practice Note looks specifically at the risk management provisions in the NEC3/NEC4 Engineering and Construction Contract (ECC), but similar provisions are found across the suite.\n\n### Risk allocation\n\nFirst, a distinction must be drawn between risk management and risk allocation in the NEC contracts. [...] # NEC contracts—risk management\n\n##### Published by a LexisNexis Construction expert\n\n# NEC contracts—risk management\n\n#### Published by a LexisNexis Construction expert\n\nimgtext\n\nThe NEC3 and NEC4 contracts encourage an ongoing, proactive approach to the Monitoring and management of risks, and anyone administering or working under these contracts needs to pay close attention to the risk management processes. This Practice Note looks specifically at the risk management provisions in the NEC3/NEC4 Engineering and Construction Contract (ECC), but similar provisions are found across the suite.\n\n### Risk allocation\n\nFirst, a distinction must be drawn between risk management and risk allocation in the NEC contracts.",
      "score": 0.6304352,
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    },
    {
      "url": "https://www.wilkes.co.uk/news/nec4-an-introduction/",
      "title": "A Legal Guide to NEC4 for the Construction Industry - Wilkes Solicitors",
      "content": "## A Round-up of NEC4\n\nThe NEC4 suite is more than just a set of construction contracts. It is a project management tool built on the principles of clarity, cooperation, and flexibility. By requiring early warnings, fostering mutual trust, and promoting structured communication, NEC4 aims to minimise disputes and encourage proactive collaboration and project management. \n\nWhile its language and obligations may initially feel unfamiliar to those used to more traditional forms like JCT or FIDIC, NEC4 offers significant advantages for well-organised teams willing to engage with its processes. [...] Engineering and Construction Contract (ECC)\n Engineering and Construction Subcontract\n Professional Services Contract\n Term Service Contract\n Short Contract\n Alliance Contract\n Design, Build and Operate Contract\n Dispute Resolution Service Contract\n Facilities Management Contract\n Supply Contract\n Short Subcontract\n Framework Contract\n Adjudicator’s Contract\n\nEach contract is supported by guidance notes and flowcharts (not forming part of the contract), aiding both clients and professionals in effective contract administration. \n\n### What is an NEC4 Contract?\n\nThe NEC4 contract was issued by the Institution of Civil Engineers (ICE) in 2017, and is the latest update to construction contracts which includes industry feedback, including terminology changes. The drafting is intended to: [...] The use of “shall” in clause 10.1 imposes a clear obligation to follow the contract’s terms. This underpins the NEC4’s role as a management tool rather than a legal weapon—requiring, for example, early warnings and compensation event notifications to be submitted strictly in accordance with the contract. \n\nClause 10.2’s emphasis on “mutual trust and co-operation” is a relatively novel concept in construction contracts, which are often only referred to when disputes arise. In Birse Construction Ltd v St David Ltd (1999), the court interpreted “spirit” “standards by which the parties were to conduct themselves and against which their conduct and attitudes were to be measured.”.",
      "score": 0.5533369,
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    },
    {
      "url": "https://www.neccontract.com/getmedia/a25e1381-cf65-41f8-8b24-505009f9953c/Guidance-on-NEC-and-underground-works.pdf?ext=.pdf&srsltid=AfmBOopgoi2XnMWjohJZjQYgU-nwSWoOIo9HdQThvQk8041LmG6VA69l",
      "title": "[PDF] Guidance on NEC and underground works",
      "content": "and underground works The Government Construction Board, Cabinet Office UK The Government Construction Board (formerly Construction Clients’ Board) recommends that public sector organisations use the NEC contracts and in particular the NEC4 contracts where appropriate, 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 the Government Construction Strategy. [...] The ECC provides for risk management through its programming, early warning, compensation event mechanisms and quality management procedures, underpinned by the cooperative approach between the ECC Project Manager and the Contractor in accordance with clause 10.2.\nThe Contractor should be required to develop and implement during construction an integrated risk management procedure, including risk management plans, risk registers, method statements, and health & safety plans in conjunction with the ECC procedures.\nIt will normally be appropriate for the Client to provide an initial risk management plan to bidders for information only, to serve as a basis for the development of the Construction Risk Management Plan (RMP) by the Contractor. [...] June 2025 Guidance on NEC and underground works JUNE 2025 Guidance on NEC and underground works Guidance on NEC and underground works Contents iii © nec 2025 neccontract.com Contents Introduction 1 Alternative approach of risk allocation 2 Geotechnical investigation and reference design 3 Risk management 4 Preparation of the GBR 5 Bill of Quantities and production rates 6 Payment and time for carrying out the excavation, support and lining works 7 Additional condition of contract (Z clause) 9 Appendix 1 – Model Z clause 10 Appendix 2 – Guidance notes 13 Appendix 3 – Location of items in ECC documents 15 © nec 2025 neccontract.com Guidance on NEC and underground works 1 GUIDANCE NOTES Introduction Introduction The NEC4 Engineering and Construction Contract (ECC) has been designed for all",
      "score": 0.5504388,
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    },
    {
      "url": "https://www.neccontract.com/getmedia/a25e1381-cf65-41f8-8b24-505009f9953c/Guidance-on-NEC-and-underground-works.pdf?ext=.pdf&srsltid=AfmBOoocRda2sRBLC7V1G5n959_toQY-Amlpxv3SLqzyHH7DZlbxCRAy",
      "title": "[PDF] Guidance on NEC and underground works",
      "content": "and underground works The Government Construction Board, Cabinet Office UK The Government Construction Board (formerly Construction Clients’ Board) recommends that public sector organisations use the NEC contracts and in particular the NEC4 contracts where appropriate, 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 the Government Construction Strategy. [...] The ECC provides for risk management through its programming, early warning, compensation event mechanisms and quality management procedures, underpinned by the cooperative approach between the ECC Project Manager and the Contractor in accordance with clause 10.2.\nThe Contractor should be required to develop and implement during construction an integrated risk management procedure, including risk management plans, risk registers, method statements, and health & safety plans in conjunction with the ECC procedures.\nIt will normally be appropriate for the Client to provide an initial risk management plan to bidders for information only, to serve as a basis for the development of the Construction Risk Management Plan (RMP) by the Contractor. [...] June 2025 Guidance on NEC and underground works JUNE 2025 Guidance on NEC and underground works Guidance on NEC and underground works Contents iii © nec 2025 neccontract.com Contents Introduction 1 Alternative approach of risk allocation 2 Geotechnical investigation and reference design 3 Risk management 4 Preparation of the GBR 5 Bill of Quantities and production rates 6 Payment and time for carrying out the excavation, support and lining works 7 Additional condition of contract (Z clause) 9 Appendix 1 – Model Z clause 10 Appendix 2 – Guidance notes 13 Appendix 3 – Location of items in ECC documents 15 © nec 2025 neccontract.com Guidance on NEC and underground works 1 GUIDANCE NOTES Introduction Introduction The NEC4 Engineering and Construction Contract (ECC) has been designed for all",
      "score": 0.5504388,
      "raw_content": null
    }
  ],
  "formatted": "Source: [PDF] NEC contracts provide an excellent basis for risk management, both ...\nURL: https://www.neccontract.com/getmedia/517c3d32-df47-4b53-b515-9faf3b377d5a/Richard-Patterson-Risk-Management-Paper.pdf?srsltid=AfmBOop8s7i9x9uHueVFbn51I7zLbW_-tPbhGBbcyqBz6QhqH3Qj4Jmz\nContract (ECC) • NEC Engineering and Construction Short Contract (ECSC) • NEC Engineering and Construction Subcontract (ESC) • NEC Engineering and Construction Short Subcontract (ECSC) • NEC Professional Services Contract (PSC) • NEC Professional Services Short Contract (PSSC) • NEC Term Service Contract (TSC) • NEC Term Service Short Contract (TSSC) • NEC Supply Contract (SC) • NEC Supply Short Contract (SCC) . NEC4 included also: • NEC Professional Services Subcontract (PSS) • NEC Design, Build and Operate Contract (DBOC) • The multi-party NEC Alliance Contract. The NEC’s approach to risk is explained in this paper by reference to the ECC. This is the member of the NEC family appropriate for implementation of a significant project and can include (any level of) design and construction. [...] management of risk throughout the period of the contract. 1 The flexibility within the ECC regarding payment is delivered by using the term ‘Prices’ in the core clauses, irrespective of the main option chosen. The clauses in each main option include a differing definition of ‘Prices’. 2 NEC4 Preparing and engineering and construction contract, Volume 2, ice publishing, 2017 3 In the cost-based options (C, D, E and F), the bidder bids fee percentages that are applied to its ‘Defined Cost’ and so must cover for profit, any element of its real cost not included in the Defined Cost and the components of the defined ‘Disallowed Cost’. Even in the ‘cost reimbursable option E’, the bidder has to take the risk that its tendered fee percentages are not sufficient to cover these costs. 4 More [...] and can include (any level of) design and construction. It is a contract between a ‘client (ECC4) or employer (ECC3) and a ‘contractor’. (The term ‘client’ is used throughout this paper). Thanks \n\n---\n\nSource: NEC contracts—risk management | Legal Guidance - LexisNexis\nURL: https://www.lexisnexis.co.uk/legal/guidance/nec-contracts-risk-management\nThe NEC3 and NEC4 contracts encourage an ongoing, proactive approach to the Monitoring and management of risks, and anyone administering or working under these contracts needs to pay close attention to the risk management processes. This Practice Note looks specifically at the risk management provisions in the NEC3/NEC4 Engineering and Construction Contract (ECC), but similar provisions are found across the suite. ### Risk allocation First, a distinction must be drawn between risk management and risk allocation in the NEC contracts. [...] # NEC contracts—risk management ##### Published by a LexisNexis Construction expert # NEC contracts—risk management #### Published by a LexisNexis Construction expert imgtext The NEC3 and NEC4 contracts encourage an ongoing, proactive approach to the Monitoring and management of risks, and anyone administering or working under these contracts needs to pay close attention to the risk management processes. This Practice Note looks specifically at the risk management provisions in the NEC3/NEC4 Engineering and Construction Contract (ECC), but similar provisions are found across the suite. ### Risk allocation First, a distinction must be drawn between risk management and risk allocation in the NEC contracts.\n\n---\n\nSource: A Legal Guide to NEC4 for the Construction Industry - Wilkes Solicitors\nURL: https://www.wilkes.co.uk/news/nec4-an-introduction/\n## A Round-up of NEC4 The NEC4 suite is more than just a set of construction contracts. It is a project management tool built on the principles of clarity, cooperation, and flexibility. By requiring early warnings, fostering mutual trust, and promoting structured communication, NEC4 aims to minimise disputes and encourage proactive collaboration and project management. While its language and obligations may initially feel unfamiliar to those used to more traditional forms like JCT or FIDIC, NEC4 offers significant advantages for well-organised teams willing to engage with its processes. [...] Engineering and Construction Contract (ECC) Engineering and Construction Subcontract Professional Services Contract Term Service Contract Short Contract Alliance Contract Design, Build and Operate Contract Dispute Resolution Service Contract Facilities Management Contract Supply Contract Short Subcontract Framework Contract Adjudicator’s Contract Each contract is supported by guidance notes and flowcharts (not forming part of the contract), aiding both clients and professionals in effective contract administration. ### What is an NEC4 Contract? The NEC4 contract was issued by the Institution of Civil Engineers (ICE) in 2017, and is the latest update to construction contracts which includes industry feedback, including terminology changes. The drafting is intended to: [...] The use of “shall” in clause 10.1 imposes a clear obligation to follow the contract’s terms. This underpins the NEC4’s role as a management tool rather than a legal weapon—requiring, for example, early warnings and compensation event notifications to be submitted strictly in accordance with the contract. Clause 10.2’s emphasis on “mutual trust and co-operation” is a relatively novel concept in construction contra\n\n---\n\nSource: [PDF] Guidance on NEC and underground works\nURL: https://www.neccontract.com/getmedia/a25e1381-cf65-41f8-8b24-505009f9953c/Guidance-on-NEC-and-underground-works.pdf?ext=.pdf&srsltid=AfmBOopgoi2XnMWjohJZjQYgU-nwSWoOIo9HdQThvQk8041LmG6VA69l\nand underground works The Government Construction Board, Cabinet Office UK The Government Construction Board (formerly Construction Clients’ Board) recommends that public sector organisations use the NEC contracts and in particular the NEC4 contracts where appropriate, 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 the Government Construction Strategy. [...] The ECC provides for risk management through its programming, early warning, compensation event mechanisms and quality management procedures, underpinned by the cooperative approach between the ECC Project Manager and the Contractor in accordance with clause 10.2. The Contractor should be required to develop and implement during construction an integrated risk management procedure, including risk management plans, risk registers, method statements, and health & safety plans in conjunction with the ECC procedures. It will normally be appropriate for the Client to provide an initial risk management plan to bidders for information only, to serve as a basis for the development of the Construction Risk Management Plan (RMP) by the Contractor. [...] June 2025 Guidance on NEC and underground works JUNE 2025 Guidance on NEC and underground works Guidance on NEC and underground works Contents iii © nec 2025 neccontract.com Contents Introduction 1 Alternative approach of risk allocation 2 Geotechnical investigation and reference design 3 Risk management 4 Preparation of the GBR 5 Bill of Quantities and production rates 6 Payment and time for carrying out the excavation, support and lining works 7 Additional condition of contract (Z clause) 9 Appendix 1 – Model Z clause 10 \n\n---\n\nSource: [PDF] Guidance on NEC and underground works\nURL: https://www.neccontract.com/getmedia/a25e1381-cf65-41f8-8b24-505009f9953c/Guidance-on-NEC-and-underground-works.pdf?ext=.pdf&srsltid=AfmBOoocRda2sRBLC7V1G5n959_toQY-Amlpxv3SLqzyHH7DZlbxCRAy\nand underground works The Government Construction Board, Cabinet Office UK The Government Construction Board (formerly Construction Clients’ Board) recommends that public sector organisations use the NEC contracts and in particular the NEC4 contracts where appropriate, 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 the Government Construction Strategy. [...] The ECC provides for risk management through its programming, early warning, compensation event mechanisms and quality management procedures, underpinned by the cooperative approach between the ECC Project Manager and the Contractor in accordance with clause 10.2. The Contractor should be required to develop and implement during construction an integrated risk management procedure, including risk management plans, risk registers, method statements, and health & safety plans in conjunction with the ECC procedures. It will normally be appropriate for the Client to provide an initial risk management plan to bidders for information only, to serve as a basis for the development of the Construction Risk Management Plan (RMP) by the Contractor. [...] June 2025 Guidance on NEC and underground works JUNE 2025 Guidance on NEC and underground works Guidance on NEC and underground works Contents iii © nec 2025 neccontract.com Contents Introduction 1 Alternative approach of risk allocation 2 Geotechnical investigation and reference design 3 Risk management 4 Preparation of the GBR 5 Bill of Quantities and production rates 6 Payment and time for carrying out the excavation, support and lining works 7 Additional condition of contract (Z clause) 9 Appendix 1 – Model Z clause 10 "
}