NEC meaning

This Checklist outlines the key matters to weigh up both prior to and following a decision to bring a building contract to an end, or any agreement connected to a construction project. Comprehensive guidance and detail on ending contracts is available in the Termination and suspension in construction contracts subtopic. Considerations when deciding whether to terminate A party contemplating steps to terminate a construction contract should reflect on the following: What grounds are relied upon for ending the contract? Review the building contract closely. Does it include explicit provisions on termination, identifying particular events that allow the parties to terminate? Many UK building contracts contain express termination rights (see Practice Notes: JCT contracts—termination, NEC contracts—termination, FIDIC contracts 2017—termination by the Employer, FIDIC contracts 2017—termination by the Contractor, FIDIC contracts (pre-2017 editions)—termination by the Employer and FIDIC forms of contract (pre-2017 editions)—termination by the Contractor). If there are contractual grounds for termination, what are they, and do they apply to the circumstances?

Use this checklist when finalising a building contract for signature. It is intended to reduce mistakes when assembling or reviewing construction documents before the parties sign and the process is completed. Consistency with other documents From the outset, coordinate with the professional team member preparing the contract documentation—for example, the Preliminaries and Employer’s Requirements—to confirm they align with the schedule of amendments and faithfully express, and accurately record, the parties’ intentions. Early engagement helps prevent inconsistencies between these documents and the agreed amendments. For more on drafting a building contract, see: Drafting a building contract/schedule of amendments—checklist. Details of the parties Provide full particulars for every contracting party—the complete company name and address, together with the registered company number (if applicable), as company names may change in future. Confirm the particulars are correct at Companies House (where relevant)...

This Checklist outlines a series of practical measures that a main contractor should weigh up if a sub-contractor it has appointed becomes insolvent during a construction project. It proceeds on the basis that the parties have a written sub-contract covering construction works that remain unfinished, and that the arrangement is not a PFI project. The precise response in any given case will inevitably turn on the contractual provisions between the parties and the stage the works have reached at the point of the sub-contractor’s insolvency, but this Checklist is intended to act as an initial framework for the contractor should such circumstances arise. For guidance on identifying warning signs of solvency issues and safeguarding the contractor’s position at the outset of a project, see Practice Note: Construction insolvency-how to spot problems and how to protect yourself-contractors. Where a sub-contractor has become insolvent, the contractor must act promptly to protect its financial position and to enable completion of the project with as little disruption and delay as possible, thereby avoiding exposure...

The Retained EU Law (Revocation and Reform) Act 2023 (REUL(RR)A 2023) confers a suite of legislative powers, allowing the relevant national authorities to reshape retained EU law (REUL) by making secondary legislation to amend, revoke, restate and/or replace REUL and assimilated law. Its principal powers are located in REUL(RR)A 2023, ss 11–16. The core procedural obligations (including parliamentary scrutiny routes) for these instruments appear in REUL(RR)A 2023, s 20 and Schs 4–5. REUL(RR)A 2023 sifting process—background Under REUL(RR)A 2023, before specified statutory instruments (referred to here as ‘REUL reform SIs’) are formally presented to Parliament, they must first undergo a preliminary sifting exercise to confirm the suitable parliamentary procedure. Details of the sifting mechanism are set out in REUL(RR)A 2023, Sch 5 Pt 2, para 6...

In this issue: EU fundamentals Data protection Energy Environment Financial services Life sciences LexTalk®EU Law: a Lexis®Nexis community Daily and weekly news alerts New and updated content Trackers EU fundamentals European elections—what’s next? From 6–9 June 2024, EU citizens headed to the polls to choose the tenth European Parliament. After negotiations on group line-ups—featuring parties changing blocs and several previously non-aligned MEPs joining political groups—the make-up of the 2024–2029 Parliament is now apparent. As forecast, the chamber has moved to the right. But what does that entail? Lavan Thasarathakumar, senior adviser at Hogan Lovells, has contributed to this assessment. See News Analysis: European elections—what’s next? Data protection Dutch DPA fines Clearview €30.5m for violations of EU GDPR The European Data Protection Board announced that the Dutch Data Protection Authority (DPA) has issued a €30.5m fine to Clearview AI Inc for infringing multiple provisions of the EU’s General Data Protection Regulation,...

In this issue: Building safety Litigation Standard form construction contracts Building regulations Infrastructure projects Procurement in construction Construction industry news LexTalk®Construction: a Lexis®Nexis community Daily and weekly news alerts New and updated content Construction trackers Building safety First ever building liability order and information orders awarded under Building Safety Act 2022 (381 Southwark Park Road v Click) In 381 Southwark Park Road RTM Company Ltd v Click St Andrews Ltd (In Liquidation) [2024] EWHC 3569 (TCC), the TCC issued the first—and, to date, only—decision granting a BLO under section 130 of the Building Safety Act 2022 (BSA 2022), alongside the first Information Orders under BSA 2022, s 132. Jefford J delivered the decision ex tempore at a consequential hearing, following the earlier trial in 381 Southwark Park Road RTM Company Ltd v Click St Andrews Ltd [2024] EWHC 3179 (TCC). The Information Orders were directed at multiple parties, including the trial defendants...

Introduction The wave of insolvencies across the construction sector is profoundly troubling, with firms still acutely exposed. Although contractor failure is not new in a market defined by thin profit margins, fixed‑price contracts and cash‑hungry, cash‑intensive delivery, ISG’s recent collapse starkly illustrates persistent challenges: heavy dependence on cash flow and the difficulty of steering multiple stakeholders on major, complex projects. Such pressures pervade large‑scale schemes throughout the industry. With the new Labour government unveiling ambitious infrastructure and housing programmes, the insolvency question is even more pressing, and lessons must be learnt to avert future industry failures. In this article, we outline the principal causes and the usual red flags that signal distress, before exploring particular insolvency concerns from both employer and contractor viewpoints. Building on that analysis, we then set out practical measures for managing risk effectively, followed by consideration of potential post‑insolvency actions against directors, and a review of the key case studies of ISG and Carillion. Throughout, the emphasis is on pragmatic guidance that enables stakeholders to...

What standard forms are available? While take-up in the private sector is still modest, the government advocates the use of project bank accounts on public sector construction schemes. See Practice Note: Introduction to project bank accounts. In light of this, JCT, NEC and PPC2000 have each released standard form documentation. This Practice Note examines their respective approaches and the stand-out characteristics of these documents/clauses. JCT JCT first launched its Project Bank Account Documentation in 2010. It was reissued within the JCT 2011, 2016 and 2024 suites, with no material textual alterations. The 2011 edition contained a consultation exercise report; in the 2016 and 2024 editions this was superseded by guidance notes. A Scottish edition was brought out by the SBCC in February 2023. These publications reflect continuity of content across the successive suites and editions over time. The 2024 materials are intended to facilitate establishment of a project bank account, and consist of three components: Project Bank Account Agreement (PBA) JCT Joining Agreement...

This Practice Note is archived and no longer updated or maintained. It outlines the differences introduced in the NEC4 standard form construction contracts when set against the NEC3 versions. It also summarises the changes from NEC3 across the standard forms. The spotlight is on the NEC4 Engineering and Construction Contract (ECC), though many ECC revisions mirror those rolled out across the broader NEC suite. Many of the points made in relation to the ECC are indicative of suite-wide adjustments. The NEC characterises NEC4 as an ‘evolution not revolution’, building on NEC3. The bulk of NEC4’s revisions appear aimed at embedding sound practice and/or cutting reliance on Z clauses (ie bespoke amendments). For further details on NEC contracts in general, including their structure, see Practice Note: NEC contracts—introduction. Publication of NEC4 The NEC4 contracts were issued by the Institution of Civil Engineers on 22 June 2017...

This Practice Note looks at the insurance provisions in the main forms of JCT contract. It examines the Contractor’s liabilities and insurance obligations under the JCT Design and Build Contract (DB) 2024 and the JCT Standard Building Contract (SBC) 2024. Where clause numbering differs between the two forms, this Practice Note draws attention to it; otherwise, clause references apply to both DB and SBC. The 2024 and 2016 editions made adjustments to the insurance provisions compared with the 2011 editions, including updates to professional indemnity insurance in the 2024 version and, in 2016, relocating much of the text from Schedule 3 into the main conditions and introducing the C.1 Replacement Schedule, see Practice Note: JCT contracts 2016—what's changed? [Archived] and News Analysis: The JCT Design and Build Contract 2024—what’s changed? For how insurance and risks are addressed in the NEC3/NEC4 Engineering and Construction Contract, see Practice Note: NEC contracts—insurance. For FIDIC contracts, see Practice Notes: FIDIC contracts 2017—insurance and FIDIC contracts (pre-2017 editions)—insurance. This Practice Note considers the JCT...

ARCHIVED: This Precedent is no longer active and receives no updates. Stop press: The NEC4 contract suite was released in June 2017...

Agreement in relation to [ insert brief details of the works/project ] at [ insert address of works ] (Incorporating, inter alia, the NEC4 Professional Services Contract 2017 with the January 2019 Amendments, October 2020 Amendments and January 2023 Amendments, as varied and augmented in the manner set out in this Agreement and in the Schedules appended hereto). This Agreement is dated the [ insert number ] day of [ insert month ] 20[ insert year ]. Parties [ insert name of the Client ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Client ] (‘the Client’); [ insert name of the Consultant ] (company registration number [ insert number ]), whose registered office is at [ insert address of the Consultant ] (‘the Consultant’). Background (A) The Client requires certain works, namely [ insert brief details of the works/project ], further and more particularly described in this contract, to be...

Appropriate contract selection We’d like to outline how you should choose the building contract for [ insert name/description of the project ]. To begin with, the form you adopt must suit the sector to which the works belong. Across the UK there exists a range of published standard forms, and their use is determined mainly by the character of the works—namely whether they concern the construction of buildings, infrastructure or civil engineering undertakings, energy projects, chemical or process plant works, or disciplines focused on electrical and mechanical engineering. Select a contract aligned to the relevant sector and the type of works proposed...