What is NEC3?

The NEC family of contracts facilitates the implementation of sound project management principles and practices as well as defining legal relationships. It is suitable for procuring a diverse range of works, services and supplies, spanning major projects through to minor works and purchasing of individual supplies and goods. The implementation of NEC3 contracts has resulted in major benefits for projects both nationally and internationally in terms of time & cost savings and improved quality.

NEC has been designed using the following three key characteristics:

• Its use stimulates good project management of the relationship between the two parties to the contract and, hence, of the work included in the contract.
• It can be used in a wide variety of commercial situations, for a wide variety of types of work and in any location.
• It is a clear and simple document – using language and a structure which are straightforward and easily understood.

Dr Jon Broome, Chairman of the APM’s Contracts & Procurement SIG, has been involved with the development of the NEC since 1993 and is an acknowledged expert and accomplished presenter on it. He gavea balanced introduction to the NEC with a focus on the project management aspects and its use outside of the construction industry from which it originated followed by an active question and answer session.  Jon's presentation can be seen below.