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ARTICLE · 20 NOVEMBER 2006

The New Engineering Contract: A Progress Report

Keating Chambers
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The “New Engineering Contract” (NEC) has: become increasingly popular, particularly in the public sector, since the first edition was published in 1993.

United KingdomReal Estate and Construction
Philip Boulding KC MA LL.B (Cantab)
Philip Boulding KC MA LL.B (Cantab)

Introduction

1. The "New Engineering Contract" (NEC) has:

  • become increasingly popular,

  • particularly in the public sector,

since the first edition was published in 1993.

2. A second edition (NEC2) was published in 1995, when it was renamed the "Engineering and Construction Contract". Points:

  • NEC2 became the norm for many central government agencies, including the Environment Agency and NHS Estates ‘Procure 21’.

  • It is also well used by local authorities, and is becoming more common in the private sector.

  • It is used, for example, by BAA on all projects including Heathrow Terminal 5.

3. The third edition (NEC3) was launched in July 2005. Points:

  • NEC3 stands as a ‘Suite’ of construction contracts designed to meet the needs of a variety of projects.

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