International Construction Law Review
THE NEC4 CONTRACT – FIT FOR PURPOSE FOR INTERNATIONAL USE?
MATHIAS FABICH, NABEEL KHOKHAR, IAN COWLING and STEFAN CIUFU-HAYWARD
(European International Contractors EIC)1
INTRODUCTION
This article is written from the perspective of European International Contractors (EIC), a European federation that has as its members construction industry trade associations from 15 European countries and represents the interests of the European construction industry in all questions related to its international construction activities. For almost five decades, EIC monitors and comments via its Working Group “Contract Conditions” on international standards forms of contract with a particular focus on the suite of contracts and guidance notes published by the International Federation of Consulting Engineers (FIDIC). EIC has published, subsequent to the publication of the Conditions of Contract for EPC Turnkey Projects (First Edition, 1999) the “Silver Book” several EIC Contractor’s Guides to the main FIDIC forms of contract and has called upon FIDIC to enrich its suite of contracts to also include a more collaborative form of agreement.
In June 2017, the Institute of Civil Engineers gave birth to its latest incarnation of the NEC suite of contracts – the NEC4 “Engineering and Construction Contract”. With a gestation period of 12 years, much is expected from this newest standard form of construction contract’s entrance into the contracting arena.
Most of the underlying principles of the previous versions are carried forward; with great emphasis once again being placed on the obligations of trust and mutual cooperation of the parties. These principles have been the foundations upon which the philosophy of the NEC contracts has been built and have been seen to be both the pillars of their attractiveness and the wrecking balls to their appeal internationally. Despite being the United Kingdom’s “go-to” contract, when it comes to its mega-projects such as the London Olympics, Crossrail and Heathrow Airport’s Terminal 5, NEC contracts have seen limited use in the international market. Rival standard
Pt 1] The NEC4 Contract – Fit for Purpose
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