Client termination for any reason now has its own secondary option clause, at X11. Clause 91.8 creates an additional right for client to terminate due to corruption. Option W: resolving and avoiding disputes The 'prohibition on corrupt acts' clause 18 seems minimal, and may result in a more detailed clause being used. The works are constructed by multiple subcontractors who are directly employed by a management contractor. The management contractor will be responsible for the procurement, coordination, and implementation of works in exchange for a fee. This means the client often takes on the financial risk. It should be noted that unlike Option B, this is not a re-measure contract. So, any error in measurement which won’t amend the price and could cause a financial loss. the risk profile and overall management strategy including, in broad terms, decisions made with regard who is best placed to manage the risks

The contract management user guide helps manage the chosen contract correctly once the contract comes into existence. For each NEC4 contract, the relevant guidance book provides detailed practical guidance, broadly based on the clause structure, on how to operate them to achieve a successful outcome.The application will contain a breakdown of the contractors’ cumulative “defined cost” plus fee minus any “disallowed cost”. This combined is known as the “Price for Work Done to Date” (PWDD). The supplier selection user guide helps with how to select a supplier. Where tendering has been chosen as the method of selection, guidance is provided on the tender process including sending out invitations to tender, tender evaluation and assessment. Guidance is also provided on finalising and awarding contracts. To put simple, this option is a priced lump sum contract. The price is then broken down into an activity schedule. NEC contracts can also be intricate and detailed, requiring a thorough understanding of their provisions. The complexity of these contracts may necessitate expert knowledge or legal advice to ensure proper interpretation and implementation. The contracts also demand large amounts of data that can that often see people becoming data managers rather than commercial managers as they grapple with multiple spreadsheets to identify the data needed. This groundbreaking initiative aimed to stimulate innovation and streamline the project management process, departing from traditional norms. Its objective was to encourage the effective application of project management principles, eliminating any potential hindrances.

NEC contracts focus on effective management processes, leading to more predictable project outcomes. We've pulled together a short guide to help you learn what's new and what your options are, particularly within NEC4. The timely issuing of notifications is essential to the NEC’s collaborative way of working. Continuous communication between all parties will ensure disputes are kept to a minimum.Project Manager: Employed by the Client, this role is similar to the Architect/ Contract Administrator under other contracts. Clause 16 introduces a brand new value engineering provision. This allows the contractor to propose changes that reduce the cost of the works in exchange for a proportion of savings as specified in the contract. The risk profile and overall management strategy including, in broad terms, decisions made with regard who is best placed to manage the risks Having been used on Velodrome and other major projects, it is no surprise to see that NEC contracts are gaining widespread recognition and adoption in the industry. There are numerous advantages that the model offers:

Scope: Essential to understanding the scope of work and describing the constraints in providing that work. This was called Works Information under the NEC3 contracts. The new 'dividing date' concept at 63.1 is interesting. It tries to clarify the confusion which currently exists about when you shift to using forecast, rather than actual, costs; and will also be used for identifying the relevant accepted programme. Clause 65 introduces a new process for proposed instructions aimed at allowing more flexibility; while the well-known clause 65.2, which prevents revisions to a compensation event if the forecast is wrong, has been amended to allow for changes if the contract explicitly says so. Core Clause 7: titleEarly Warning Register: Helps create awareness about project-specific risks. This was called the Risk Register under the NEC3 contract. The new NEC4 user guides provide step-by-step support to help users choose the most appropriate NEC4 contract, prepare the chosen contract, select a supplier and then manage the contract to deliver the client’s objectives. NEC4 introduces a new dispute resolution procedure involving discussions between parties' senior representatives over a three-week period, based on submissions and producing a list of issues. This process is compulsory if option W1 is selected, or can be used by agreement if option W2 is selected. Note that the form states that submissions can be up to 10 sides of A4 with supporting documents, but hopefully parties will use these provisions sensibly. Collaboration and Cooperation: A distinctive feature of NEC contracts is the emphasis on collaboration and a non-adversarial approach. The contracts promote early involvement of all parties, encouraging cooperation and open communication throughout the project lifecycle. This collaborative environment fosters a proactive problem-solving mindset, leading to more efficient decision-making and improved project outcomes.