NEC3/NEC4 meaning

This illustration depicts the framework of a project procured via PPC 2000...

This flowchart illustrates the process of making a proposed instruction claim under the NEC4 Engineering and Construction Contract It may give the Contractor grounds for extra time to finish the works and/or further payment, where relevant. For a chart clearly setting out the procedure for general compensation events, see Compensation event claims under the NEC4 Engineering and Construction Contract—flowchart. For broader guidance on the NEC compensation framework, refer to Practice Note: NEC contracts—compensation event regime, and for the NEC3 compensation process consult Compensation event claims in the NEC3 Engineering and Construction Contract—flowchart...

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...

Payment procedure within the NEC3 Engineering and Construction Contract (ECC) —workflow HGCRA 1996 governs — option Y(UK)2 chosen...

This flow diagram outlines the steps for submitting a compensation event claim seeking extra time to finish the works and/or extra payment under the NEC3 Engineering and Construction Contract...

UK Grid Solutions Ltd and Amey Power Services Ltd v Scottish Hydro Electric Transmission Ltd [2024] CSOH 5 What are the practical implications of this case? This decision reiterates the governing principles for assessing whether an adjudicator overlooked a defence advanced by the respondent. Where an adjudicator does not engage with a defence that would have been significant to the resolution of the dispute, the resulting award will be incapable of enforcement (Construction Centre v Highland Council). That said, the lesson emphasised here is that an adjudicator is not obliged to tackle every point ventilated in the referral, so long as their reasoning sufficiently discloses the route to the conclusion reached. In addition, the judgment confirms that the court will not decline to enforce merely because the terms of the adjudicator’s orders contain mistakes, provided it remains plain what orders were in fact intended. What was the background? UK Grid Solutions Ltd and Amey Power Services Ltd created a joint venture (the JV). In October 2018,...

Arthur Simmers against Green Cat Renewables Ltd plus another [2025] CSOH 11 What was the background?...

Greater Glasgow Health Board v Multiplex [2025] CSOH 56 What are the practical implications of this case? This ruling prominently underscores how the PL(S)A 1973 operates to prevent an affected party from recovering damages for defective works. It also stresses that those affected must promptly pinpoint the earliest date on which loss arose from a relevant contractual breach, so that proceedings are commenced within the prescribed period, namely where: mere ignorance of the contractual breach by the affected party is insufficient only unequivocal proof of positive acts by the party responsible for the defects, which induced the affected party not to bring a claim, will prolong the prescribed period any interruption of the prescriptive period excludes any time after the affected party could, with reasonable diligence, have identified the defects What was the background? In 2009, the parties entered into an NEC3 contract for the design and construction of the new Queen Elizabeth Hospital in Glasgow. Practical completion was...

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...

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