Michael Rowlinson - Practical Guide to the NEC3 Engineering and Construction Contract

1. Chapter 01
2. Chapter 02
3. Chapter 03
4. Chapter 03
5. Chapter 21

1. Chapter 09
2. Chapter 16

Second Edition

Michael Rowlinson

This edition first published 2016
2011, 2016 by John Wiley & Sons, Ltd

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Library of Congress Cataloging-in-Publication Data

Rowlinson, Michael, author.
A Practical guide to the NEC3 Engineering and Construction Contract / Michael Rowlinson. Second edition.
pages cm
Includes bibliographical references.

ISBN 978-1-119-03297-7 (cloth
1.NEC Contracts. 2.Civil engineering contractsGreat Britain. 3.Construction contractsGreat Britain. I.Title.
KD1641.R69 2016
343.4107862dc23

2015028378

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In writing this guide I have set out to provide a view, much of it personal, as to how to get the most out of the third edition of the New Engineering Contract Engineering and Construction Contract (ECC). It is no secret that I am a fan of this contract and, as a result, may be willing to overlook what many perceive as it faults or weaknesses. In this guide I have tried to identify and suggest ways in which the procedures and aims of the contract can be simplified so that users do not become unnecessarily bogged down in procedure, but instead concentrate on achieving the goals of the ECC. This guide therefore goes through the procedure in detail as intended by the relevant clauses, but concentrates on practical issues to provide suggestions which the parties can use to achieve the overall intent and spirit of the ECC and to reach the common goal.

With this guide, you get what it says on the cover: A Practical Guide to the NEC3 ECC Form of Contract. It is a guide to provide users of the ECC, both novice and experienced, with a view of all its various philosophies, principles, mechanisms and vagaries. The reader will be guided through the contract in a manner that will enable him or her to use this guide for reference without necessarily having to read it all: in other words, a practical guide rather than a stuffy text book. That said, there will be an amount of cross-referencing between sections in order to avoid repetition, so users will need to follow these references to find more detailed supporting guidance to particular issues. One area that is not cross-referenced is the term spirit of mutual trust and cooperation as found in clause 10.1 of the ECC, although used extensively throughout the guide. If users are uncertain of the meaning of this phrase, then they need to re-read .

To assist the reader in finding where any particular clause, related legal case or UK statute is referred to in the text, a comprehensive index of such references is included in .

The more I have worked with this contract over the years, the more I have come to think of it not as a contract but as a Project Management Procedures Manual. This should not be a surprise as the original contract was drafted by project managers for construction professionals (and not by lawyers for other lawyers and judges).

Nevertheless, we must not lose sight of the fact that the ECC is a contract and, as such, legally binds those parties that enter into a contract incorporating these standard terms.

This second edition of the book was requested by the publisher after three successful years for the first edition. During that period, NEC had re-printed the third edition of the contract, together with the rest of the family. This re-print had made relatively minor amendments to a number of clauses and introduced a new secondary option for use in the UK. These amendments have been incorporated into the text as part of this revision. At the same time, references to the previous text have been expunged. The clauses that have been amended as part of the re-print are indicated in by means of an asterisk (*) in the clause number column.

In addition, NEC had issued amendments in September 2011 which made changes to two of the Options (W2 and Y(UK)2) to cater for the amendments to the Housing Grants, Construction and Regeneration Act 1996 contained in the Local Democracy, Economic Development and Construction Act 2009, which became effective for all new contracts entered into from 1 October 2011. These had been referred to in the first edition of this book as being expected to be effective from 1 April 2011, but the delay had not been announced until the original text had gone to print.

Within this revision I have also taken the opportunity to make amendments and additions to the contents to include my own evolving knowledge of the ECC and developments to the practical side which have come to my attention from various sources. Some useful suggestions from reviewers of the first edition commissioned by the publisher have also been considered and included as appropriate and practical.

Being a practical guide, this book considers the mechanics of the contract and not of the law. As a practicing construction professional, I am interested in the successful outcome of the project for all parties involved. From my point of view, the employing organisation should get what it wants in terms of a project finished on time, to the required quality and within budget (providing, of course, that the budget was reasonable in the first place). The consultants should be recognised for their contribution, whether it be design, management or commercially orientated, and be paid a reasonable fee for the service they provide. The contractors and subcontractors who carry out the work should be allowed to work efficiently, be recognised as having contributed to the project and make a profit.