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NEC Contracts

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The NEC family of contracts is one of the most commonly used suite of construction and engineering contracts, both in the UK and internationally. Known for their collaborative and proactive approach, and with a real focus on project management, NEC contracts are designed to be used on a wide range of projects across many sectors and are capable of being used for all stages of the project lifecycle – from design/inception through to operation and maintenance. 

The market-leading CMS Construction team has wide experience of advising clients across the whole range of NEC contract forms and pricing options. We apply our in-depth expertise and practical experience in helping our clients maximise the benefits of using NEC contracts and in providing bespoke solutions as required for particular projects. This extends through to advising on the operational use and management of assets, facilitated by a term service contract form or the recently introduced facilities management suite of contracts.

A selection of our recent NEC contract experience includes:

Energy and utilities

  • Hinkley Point C new nuclear power station – advising an international construction joint venture on a £multi-billion alliance contract for the mechanical erection, electrical erection and HVAC and related works packages using a contract form based on the NEC4 Alliance Contract.
  • Scottish Water on the procurement, and contractual aspects advising on a comprehensive suite of NEC4 contracts (including ECC, PSC, and TSC) of its c. £4 billion capital investment programme for 2021 – 2027. 
  • Cadent Gas on a hydrogen pipeline project.
  • SSE on the EPC contract including drafting bespoke payment and performance incentive terms for the construction of a combined cycle gas turbine power station.

Transport and infrastructure

  • Transport Scotland on the construction contract (based on NEC4 ECC terms and incorporating amendments from the client’s existing non-NEC based template) for the dualling of the A9 from Tomatin to Moy. 
  • Mace/ Dragados JV on main contracts and a variety of sub-contract and supply chain agreements using a comprehensive set of NEC3 sub-contract forms and all contract options for the construction of the new Curzon Street station in Birmingham and the redevelopment of Euston Station for HS2.
  • City of Edinburgh Council on a large transport infrastructure project in Edinburgh city centre. 

Health and education

  • Balfour Beatty on a NEC4 ECC contract for the partial design and construction of a hospital in the Midlands.
  • University of Glasgow on its construction procurement strategy and contracting terms (using a variety of NEC3 forms) for its £1billion varied and complex programme of campus development, based on the masterplan produced for the former Western Infirmary site. 
  • Moorfields Eye Hospital NHS Foundation Trust and UCL in the development of a new world leading eyecare, education and research centre to be constructed at Kings Cross, London, using the NEC4 suite of contracts. 
  • Imperial College London on its contractual arrangements for laboratory and teaching facilities.

Asset management / O&M

  • Wellcome Trust on construction contracts and FM contracts (using the NEC4 FM form) for the Wellcome Genome Campus.
  • Northern Ireland Water on O&M contract arrangements (based on the NEC4 TSC form) for the hand back of a wastewater treatment works prior to an upgrade of the facility.
  • Wates Group on framework agreements utilising NEC3 and NEC4 TSC and FM forms of contract as the call-off contract terms for facilities management projects. 
17/05/2024
CMS International Construction Study 2024
In recent years, construction and engineering businesses have faced a whole storm of headwinds. CMS, in partnership with YouGov, asked in-house lawyers about the biggest challenges of managing disputes in this environment - and how those challenges can be met.   Sixty-second summaryThe evolving nature of construction risk will see changes to standard contracts and negotiation positions. It may also bring more disputes, particularly where those changes lag behind project realities. Fewer than half the businesses we surveyed reported that the in-house legal or contract management team is always consulted at the start of a project to identify areas of risk and to establish appropriate risk management strategies. Most in-house lawyers believe their businesses could improve the way in which risk is managed during projects - often in a number of important ways. Despite the potential benefits, only 17% of the in-house lawyers we surveyed are using AI in disputes or contract management. Some say they will never use it. Most in-house lawyers believe their businesses have a lot of scope to improve the way that project risks are managed. AI has the potential to be a game-changer in this area by optimising processes, planning, scheduling and other elements of case management and by revolutionising the way a business handles its portfolio of contracts. 
Publication
10/11/2023
Driving sustainability in real estate and construction
Contributing to the fight against climate change and creating social value are now priorities for the real estate and construction sectors.   The long-term nature of the built environment means that resilience and sustainability should be considered at every stage if buildings are to be environmentally and socially responsible. This brings both opportunities and challenges for the businesses that create, own or maintain it. They must consider the evolving technical, regulatory and market landscape, to ensure that their investments are future-proofed commercially, as well as environmentally and socially. This section of Bandwidth looks at some of the ESG issues that confront developers and property owners, and how they can incorporate practical solutions into their businesses.
Publication

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17/05/2024
CMS International Construction Study 2024
In recent years, construction and engineering businesses have faced a whole storm of headwinds. CMS, in partnership with YouGov, asked in-house lawyers about the biggest challenges of managing disputes in this environment - and how those challenges can be met.   Sixty-second summaryThe evolving nature of construction risk will see changes to standard contracts and negotiation positions. It may also bring more disputes, particularly where those changes lag behind project realities. Fewer than half the businesses we surveyed reported that the in-house legal or contract management team is always consulted at the start of a project to identify areas of risk and to establish appropriate risk management strategies. Most in-house lawyers believe their businesses could improve the way in which risk is managed during projects - often in a number of important ways. Despite the potential benefits, only 17% of the in-house lawyers we surveyed are using AI in disputes or contract management. Some say they will never use it. Most in-house lawyers believe their businesses have a lot of scope to improve the way that project risks are managed. AI has the potential to be a game-changer in this area by optimising processes, planning, scheduling and other elements of case management and by revolutionising the way a business handles its portfolio of contracts. 
Publication
16/05/2024
Built on sand: problems of risk allocation and collaboration in port development...
In­tro­duc­tion The British Ports Association estimated in 2022 that there were £1.7bn of port projects in the pipeline, and investment in port infrastructure topped £1bn in 2021. There is pressure to...
Law-Now Real Estate
07/05/2024
JCT 2024: a closer look
The official launch of the JCT’s 2024 suite was held last week, focusing on the recently published Design and Build Contract, Sub-Contract and Guide. Updated contracts for the remainder of the suite...
Law-Now Real Estate
02/05/2024
Building Safety Act Conference
 CMS is bringing together clients from across the industry to hear from industry experts and each other about the next phase of regulation, how the BSA is impacting development and construction and how the Courts are applying the le­gis­la­tion. Please click the button below to register for this event.
Event Legal
Building Safety Act Conference
CMS is bringing together clients from across the industry to hear from industry experts and each other about the next phase of regulation, how the BSA is impacting development and construction and how the Courts are applying the legislation.
Event Legal
24/04/2024
Challenging conclusivity and “playing for time” under the JCT final account...
A recent TCC decision has considered the final account conclusivity provisions of the JCT form and the circumstances in which an adjudication commenced to preserve a challenge to the final account can...
Law-Now Real Estate
19/04/2024
When does the right to request a collateral warranty become time-barred?
A recent decision of the Court of Session appears to be the first case in England or Scotland to consider when a right to request the delivery of a collateral warranty becomes time-barred. The Court found...
Law-Now Real Estate
16/04/2024
To decide or not to decide: burden of proof findings and subsequent adjudications
A recent decision of the Scottish Court of Session has considered whether the failure to prove a delay damages claim in one adjudication prevented the claimant from renewing the claim in a subsequent...
Law-Now Real Estate
26/03/2024
Eligibility for transitional arrangements in building control approval...
The Building Safety Regulator (BSR) has recently reminded developers of building work in England, whether involving a higher-risk building (HRB) or not, of the required steps they must take to ensure...
Publication
22/03/2024
Is notification of loss and expense under the JCT a condition precedent?
A recent decision of the Scottish Court of Session has considered whether the notification of a claim for loss and expense is a condition precedent under the 2016 edition of the JCT form. The wording...
Law-Now Real Estate
21/03/2024
Construction Focus 2024
The CMS Scotland Construction team invites you to Construction Focus 2024, our annual construction law review taking place in our Glasgow office. During this in-person session, we will review the latest construction law developments, consider the key issues, and provide practical insight on market trends. This will in­clude:Prac­tic­al implications of the continued rise in ESG Re­quire­ments­Man­age­ment of Fluctuation Provisions and Inflation in Con­tractsLe­gis­lat­ive Changes Affecting Con­struc­tion­Please join us for networking drinks following the session, even if you are unable to make it to the seminar. Please register using the button below so that we can ensure there's enough space and refreshments for everyone. We look forward to welcoming you!  
Event Legal
13/03/2024
The validity of complex adjudicator nomination procedures under the Construction...
A recent TCC decision has considered the validity of a complex contractual adjudication procedure requiring nomination from a panel of adjudicators. The fact that the procedure had the potential to run...
Law-Now Real Estate
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