Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

NEC definition

What does NEC mean? NEC (formerly “New Engineering contract”) describes the widely used suite of standard-form construction and engineering contracts published by the Institution of Civil Engineers. It is not defined in legislation; the term is a descriptive label for these standard forms. The current edition is NEC4 (first issued 2017 and periodically updated). NEC3 remains in circulation on legacy and ongoing projects. Core forms include the NEC4 Engineering and Construction Contract (ECC), Professional Services Contract (PSC), Term Service Contract (TSC), Framework Contract (FC), Supply Contract (SC) and the Alliance Contract (ALC). Key legal features include collaborative drafting, proactive risk management (early warnings and the...

NEC3/NEC4 ECC liabilities and insurance: allocation between Client and Contractor, with Contractor’s All Risks, public and employers’ liability, joint names, subrogation waivers and Option X15 professional indemnity

Published by a LexisNexis Construction expert

Practice notes

This Practice Note

Explores the Allocation of risk and the insurance obligations within the NEC Engineering and Construction Contract (ECC). It identifies the insurances each party is expected to maintain, including Contractor’s All Risks insurance and public liability cover, and indicates the scope of cover to be in place...

For wider context on NEC3 and NEC4, and how insurance is addressed under other standard forms, see:

Practice Note: NEC contracts—introduction
Practice Notes: JCT contracts—insurance, FIDIC contracts 2017—insurance and FIDIC contracts (pre-2017 editions)—insurance

This guidance applies to both the NEC3 and NEC4 editions of the ECC. For consistency, the term ‘Client’ is used throughout, aligning with NEC4 usage for the developer/employer (the NEC3 ECC uses ‘Employer’). For defined NEC expressions, refer to Practice Note: NEC contracts—glossary. Where no distinction is made between clause numbers, all clause references in this Practice Note are intended to apply to the corresponding provisions in both the NEC3 and NEC4 versions of the ECC...

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Web page updated on 21/05/2026

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