The New Engineering Contract (“NEC”) is truly a “new” form of contract and yet it also borrows from traditional forms as well. A key question that this combination of new and old thus raises is how it should be approached in theoretical terms. The NEC does not fit easily within traditional contractual models. In fact, it would seem that much of traditional contract law operates at cross-purposes to the philosophy of the NEC as articulated by its drafters. If one accepts this proposition the question becomes whether another theoretical contractual framework can be put forward that better supports the NEC. It is suggested here, in answer to this, that a new contractual model, the relational contract model , provides the most sound theoretical framework for and explanation of the NEC. The centrepiece of the theoretical framework or paradigm developed here is the notion of co-operation . Co-operation, as will be described and expanded upon below, drawing upon the notions of good faith and fairness, in the context of relational contract theory, provides the best basis for reconceptualising not only the NEC but the construction contract as well. This two-part article sets forward and applies that model demonstrating how the theory works “on the ground”, tracing the locus of the NEC in empirical research on contract behaviour, long term contracting, partnering, fiduciary relationships, and dispute management.

Before turning to the theoretical model in detail some reasons as to why theory is important may be outlined. The first reason is that many of the

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