Guidance on NEC4 contracts published
The Construction leadership Council (CLC), of which ECA is a key member, has published new guidance for construction firms to collaborate with clients and avoid disputes relating to the covid-19 pandemic.
The guidance focuses on the NEC4 Engineering and Construction Contract (ECC), although it can also be applied to the NEC4 Engineering and Construction Subcontract (ECS), NEC3 ECC and ECS, subject to some amendments.
Steve Bratt, ECA CEO and Chair of the CLC’s Business Models Workstream said: “Following previous guidance, CLC remained open to industry feedback and this guidance was developed in response to a series of questions which were raised with regard to projects impacted by covid-19 operating under NEC contracts.
“As industry continues to manage the challenges of covid-19, we are becoming increasingly concerned that many outstanding disputes remain unresolved and much uncertainty exists with regard to future contracts. We are therefore keen to do all we can to ensure clients work with their supply chains to fairly and collaboratively manage the commercial risks caused by covid-19. Safety is paramount, but collaborative risk sharing will ensure secure project delivery and a long-term sustainable industry.
“Covid-19, safe working procedures and wider disruption has presented all parties with unquantifiable and unmanageable risks and costs. Traditional behaviours such as inappropriate risk transfer will not only lead to a negative outcome on individual contracts but will almost certainly lead to systemic failure in a fragile market seeking to build back greener and better.”