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ARTICLE · 13 MAY 2013

The Engineering And Construction Contract (NEC3): A Comparative Analysis – Part 2

Reed Smith (Worldwide)
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In our last Alert, we assessed the philosophy of the NEC Engineering and Construction Contract against the FIDIC Conditions of Contract for EPC/Turnkey Projects.

United KingdomEnergy and Natural Resources
Hayley Steel
Hayley Steel
Laura Riddeck
Laura Riddeck
Richard Ceeney
Richard Ceeney
Vincent Rowan
Vincent Rowan
Lynne Freeman
Lynne Freeman
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Introduction

In our last Alert, we assessed the philosophy of the NEC Engineering and Construction Contract ("NEC3") against the FIDIC Conditions of Contract for EPC/Turnkey Projects ("FIDIC Silver"), with a view to assessing its suitability for high value, large-scale international projects. We considered the approach and structure of both, their "portability", their approach to risk, and the role of third parties. There is a clear contrast between the two concepts:

  • FIDIC Silver: delivering a "turnkey" solution, where the employer expects the contractor to take full responsibility for delivery of the project.
  • NEC3: a more collaborative approach, with greater levels of contract administration as a consequence.

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