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NEC3 - Essay Example

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The Client has had minimal prior knowledge about the New Engineering and Construction Contract 3rd edition (NEC3) but has never used any of the NEC3 contracts for any of their projects. As a result of the numerous problems that arose with the use of the JCT on this project the…
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Download file to see previous pages... New Engineering Contracts 3rd Edition or NEC3 is a modernistic family of contracts of contracts. It helps in implementing construction project management and supervisory principles. NEC3 synchronises the different business and engineering practices and also renders definitions for the different legal relationships and liabilities. Hence, adoption of NEC3 family of contracts culminates at an altogether cultural transformation of a construction company and its different construction project sites and subsidiaries. According to New Engineering Contract (2005), the principal feature of this cultural transformation is the complete abandonment of a hindsight dependent reactive management paradigm. NEC3 helps the construction company and its various contractors to embark on a foresight based proactive management mechanism with clearly defined contracting rules and regulations that are fair towards both the employers and the contracting agencies.
The Office of Government Commerce (OGC) has endorsed NEC3 as a family of contracts that can satisfy the contemporary Achieving Excellence in Construction (AEC) principles (New Engineering Contracts, 2005). This implies that NEC3 is compliant with the most recent government regulations laid down by the 21st century legal developments of UK. In this context, NEC3 contracts can be synchronised with the regulations such as Utilities Contracts Regulations (2006) too (Ashworth, 2011; Close, 2011). OGC has recommended the use of NEC3 family of contracts by the public sector procurers on their construction projects for the sake of authenticity and complexity issues. So it can be further deduced that NEC3 has been recommended by OGC as a compact and unitary engineering contracts mechanism. This is not the case with JCT2011. JCT contracts (as devised by the Joint Contacts Tribunal Limited, ...Download file to see next pagesRead More
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