nec3 to nec4 · tssc option a nec4 - tssub z z z z z z z clauses. thames tideway tunnel project

NEC3 to NEC4Key changes for flexibility and tier 2

Matthew Garratt

Costain / NEC team

NEC4 Contract suite

New

Contracts (16)

ECC & ECC Short

ECS & ECS Short

TSC & TSC Short

TSS (subcontract)

PSC & PSC Short

PSS (subcontract)

Supply & Supply Short

Dispute Resolution Service

Framework

DBOC

Alliance

NEC4 Contract suite

New

Contracts (16)

ECC & ECC Short

ECS & ECS Short

TSC & TSC Short

TSS (subcontract)

PSC & PSC Short

PSS (subcontract)

Supply & Supply Short

Dispute Resolution Service

Framework

DBOC

Alliance

New

New

TIDEWAY – USE OF NEC CONTRACTS

5

Thames Tideway Tunnel

6

Tunnel statistics

• Length: 25 kilometres

• Gradient: Falls one metre every

790 metres to be self-cleansing

• Diameter: 7.2 metres

• Volume: 1.6 million cubic

metres (include Lee Tunnel)

Tideway – use of NEC contract suite

Employer

Contractor

ECC Option C

Project Manager

PSC

Supervisor

PSC

DesignPermanent works

PSC Option CTemporary works

PSC Option E

NEC4 - PSSub

Sub-Contractorse.g. marine works,

civils works,

groundwork, ground

investigation, surveys,

monitoring

ECS Option A

ECS Option B

ECS Option C

ECSS – Option A

Materials Supplye.g. tunnel segments

SC Option A

Service providerse.g. consents

management, report

preparation, labour

supply

PSC Option A

PSC Option E

Equipment Supplye.g. TBM machines

SC Option A

Term Service

Contractorse.g. security,

occupational health

TSC Option Alabour supply

TSSC Option A

NEC4 - TSSub

Tideway– use of NEC contract suite

Employer

Contractor

ECC Option C

Project Manager

PSC

Supervisor

PSC



PSC Option E

NEC4 - PSSub


civils works,

groundwork, ground


monitoring

ECS Option A

ECS Option B

ECS Option C

ECSS – Option A


SC Option A


management, report

preparation, labour

supply

PSC Option A

PSC Option E


SC Option A

Term Service


occupational health


TSSC Option A

NEC4 - TSSub

Z clauses


Employer

Contractor

ECC Option C

Project Manager

PSC

Supervisor

PSC



PSC Option E

NEC4 - PSSub


civils works,

groundwork, ground


monitoring

ECS Option A

ECS Option B

ECS Option C

ECSS – Option A


SC Option A


management, report

preparation, labour

supply

PSC Option A

PSC Option E


SC Option A

Term Service


occupational health


TSSC Option A

NEC4 - TSSub

Z

Z

Z

Z

Z

Z

Z

clauses

Thames Tideway Tunnel project – use of NEC contract suite

Employer

Contractor

ECC Option C

Project Manager

PSC

Supervisor

PSC



PSC Option E

NEC4 - PSSub


civils works,

groundwork, ground


monitoring

ECS Option A

ECS Option B

ECS Option C

ECSS – Option A


SC Option A


management, report

preparation, labour

supply

PSC Option A

PSC Option E


SC Option A

Term Service


occupational health


TSSC Option A

NEC4 - TSSub

CVB JV

The need for innovation and new solutions

How can such improvements be delivered?

33%Lower costs

50%Faster delivery

50%Lower Emissions

The Construction Leadership Council has set out

aspirations for 33% lower costs, 50% faster delivery

and 50% lower emissions. Effective procurement can

assist in delivering better outcomes for the whole

project. Projects procured under NEC contracts, such

as Crossrail, demonstrate how good procurement

strategies can deliver successful projects and assist in

delivering economic growth.

Clients are facing major operational and financial challenges

Construction Leadership Council goals

NEC4 – new features

Contractor’s proposals for new solutions

• The Contractor can propose changes to Scope which reduce costs

• The parties can share the benefits

• The Contractor can propose changes to Scope to reduce whole life cost[New secondary option]


• The Contractor can propose acceleration to shorten the programme



Early Contractor Involvement (ECI)

• A secondary option for ECI

• Appoint a Contractor at an early stage, to participate in the development of designs and proposals

• Contractor inputs to the design at a stage when significant improvements and innovation can be introduced

1 2 3 4 5 6 7 8

Feasibility

Study

Concept

Design

Detailed

Design

Major Plant

Procurement

Co-ordinated

Drawings

Pre-fabrication

& Construction

Project

Commission

Operation

Project Life Cycle (time)

ABILITY TO

INFLUENCE COST

COST OF

CHANGEPro

ject C

osts

Early Contractor Involvement – principle

1 2 3 4 5 6 7 8

Feasibility

Study

Concept

Design

Detailed

Design

Major Plant

Procurement

Co-ordinated

Drawings

Pre-fabrication

& Construction

Project

Commission

Operation

Project Life Cycle (time)

LOSS OF

ABILITY TO

INFLUENCE

COST &

PROGRAMME

COST OF

CHANGEPro

ject C

osts

Early Contractor Involvement – principle

CONTRACTOR &

SUPPLY CHAIN

INVOLVEMENT


Contractor design and build option

• A new secondary option for the ECC and ECS

• Professional indemnity insurance to be provided by the Contractor

• The Contractor’s design duty has been aligned with industry standard preferred by insurers

• Intellectual property ownership and license to use material

• Retention of documents / design information


Building Information Modelling (BIM)

• A secondary option for BIM

• Provides additional clauses to support the

management of BIM specific

requirements

• Deals with Issues of BIM Model and BIM

Information ownership, and liability of the

parties


Dispute Avoidance Board Option

• Dispute resolution option W3 introduced

• Not used where UK HGCRA applies

• Dispute Avoidance Board is nominated by the parties at the time the contract is formed

• DAB members become familiar with the project prior to any dispute arising

• The DAB help parties find a solution to disputes

• They provide a recommendation to resolve the dispute if it is not resolved by discussion

• Parties can accept the recommendation, it is not binding

Other New Features


Undertakings to

Others (collateral

warranties) –new

secondary option

Bribery

and corruption

clauses

Confidentiality

and publicity

clauses

Transfer

of benefits

(assignment)

clauses

Quality

management

Additional

compensation

events

(user defined)

New

termination

secondary

option

NEC4 – summary

Increased range of potential contract and procurement solutions for projects and works programmes of all types and sizes.

• No problems moving from NEC3 to

NEC4 – style, structure and key

features remain

• Plain English drafting style remains

Supports the on-going drive for:

• further collaboration and integration of

teams and supply chain

• innovation and new solutions

• modern work methods

• capex and opex consideration

• management of risk and opportunity

• avoid disputes

NEC3 to NEC4Key changes for flexibility & tier 2

Matthew Garratt

Costain / NEC team

nec3 to nec4 · tssc option a nec4 - tssub z z z z z z z clauses. thames tideway tunnel project

Documents