Twelve years after the New Engineering Contract NEC3 was launched, its successor, NEC4, was released in June last year.

Amid this development, Induna has launched its new NEC4 course, which outlines how the new engineering contract has built on NEC3 with enhancements and new features.

The course will look at the NEC – ECC core clauses, main and secondary options, contract strategy and structure from the perspective of Contractor and Subcontractor appointment.

All of the changes in NEC4 are as a result of feedback from the industry and targeted at providing solutions to meet client needs.

We dive into these changes in full in our new course, and listed below are just a few update examples, to give you an idea of some of the changes.

Contractors’ proposals

When it comes to contractors’ proposals, NEC4 states the contractor may propose a change to the scope which reduces cost.

Also, the contractor may propose an acceleration to achieve completion before the completion date.

Clauses which deal with intellectual property ownership, and the license to use material provided by the parties to each other, have also been introduced.

Quality management, bribery and corruption

The NEC4 contracts introduce a requirement for the contractor to prepare and issue a quality management system and plan.

In addition, NEC4 contracts include core clauses which prohibit corrupt acts and provide a termination remedy in the event that a corrupt act is carried out.

Additional compensation events

NEC4 contracts now provide the facility for additional compensation events to be added into the contract.

This would be a Client decision, made at the time the contract is prepared.

To find out more about this course and its contents, click on this link. The course further includes post workshop Assessments and case studies for the year as well as access to dispute resolution experts.