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52-747: There have been four editions, the first in 1993, the second in 1995, the third in 2005 and the most recent in 2017. The NEC3 was launched in 2005 and it was amended in April 2013. The NEC Users' Group, with over 400 members worldwide, brings together organisations and individual users of the NEC contract suite to exchange knowledge and best practice. Originally contracts in the civil engineering and construction industries were bespoke and drafted by Chancery pleaders using their knowledge of leases rather than building processes. In 1879, Royal Institute of British Architects for construction projects created RIBA forms which lead to

104-578: A consultative form of the New Engineering Contract form of contract. The first edition was published in 1993. Wider use of the NEC was recommended by the Latham Report in 1994. NEC's history started in 1986 when Martin Barnes was commissioned to start drafting a contract to stimulate good project management. The first edition of NEC was launched in 1993. NEC2 arrived two years later, in 1995. NEC2

156-534: A dedicated association for solicitors instead, offering offices and accommodation. The foundation of the Society of Gentlemen Practisers and Law Society of England and Wales in 1739 and 1825 respectively as professional bodies for the solicitors profession relegated the Inns of Chancery to little more than eccentric dining clubs, and they were gradually dissolved and sold. In 1897 a popular book reported that nobody could remember

208-518: A design for an employer or contractor, they would sign up and follow the clauses within the PSC. Most of the clauses within this contract are the same or similar to those in the main ECC contract, so that all contractors, designers and subcontractors have broadly the same obligations and processes to follow as each other. The PSC can be used in a wide variety of situations with relatively little change required. As with

260-477: A member of the Inn. Members were noted as "a wild lot" known for their drinking and parties. In its later years the Inn was a poor one, and had no library or chapel, with most of the funds being spent on repairs and maintenance for the building. Lyon's Inn was "a place of considerable antiquity", with records from 1413. Originally a hostel, it was purchased by the inhabitants and turned into an Inn of Chancery. Initially

312-450: A party has or has not carried out the next contractual action. The following demonstrates the differing approaches to drafting in the NEC and ICE forms of contract using the illustration of circumstances when the contractor is entitled to additional time and cost for physical conditions: The Contractor encounters physical conditions which are within the site, are not weather conditions and which an experienced contractor would have judged at

364-589: A project, and puts extra contractual requirements on them during their procurement/manufacture period. The Supply Contract is for big bespoke items i.e. designed and manufactured specifically for that contract, with the Short Supply Contract potentially being for more run of the mill / commoditised items on a project. Neither of these contracts cover working on a site as they are not written as 'supply and install' contracts. Dispute Resolution Services Contract (DRSC) - previously Adjudicator's Contract If there

416-418: A result of client actions, but financial compensation may not always arise and in some cases variations will result in a cost saving. The NEC contracts now form a suite of contracts, with NEC being the brand name for the "family" of contracts. When it was first launched in 1993, it was simply the "New Engineering Contract". This specific contract has been renamed the "Engineering and Construction Contract" which

468-640: A series of successful NEC3 projects in the region, the Hong Kong government announced in November 2016 that the NEC contract suite would be used for all future public works projects as far as practicable. Since 2017, Hong Kong has progressively moved to adopt NEC4. NEC4 was announced in March 2017 and has been available since June 2017. This new edition reflects procurement and project management developments and emerging best practice, with improvements in flexibility, clarity and

520-552: A single collaborative contract with a number of participants in order to deliver a project or programme of work. The basis of the contract will be that all parties work together in achieving client objectives, and share in the risks and benefits of doing so. Facilities Management contract suite The NEC4 FMC suite includes the Facilities Management contract (FMC), subcontract (FMS), short contract (FMSC) and short subcontract (FMSS). Guidance Notes and Flowcharts Each of

572-433: A single supplier. It can include a range of different services to be provided before, during and after engineering and construction works are completed. Alliance Contract (ALC) The NEC4 Alliance Contract (ALC), published initially in a consultative format, was created to support clients who wish to take a step forward by fully integrating the delivery team for large complex projects. The ALC should be used to engage in

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624-437: A small but respected Inn that educated people as noted as Sir Edward Coke , Lyon's Inn became a disreputable institution that "perished of public contempt long before it came to the hammer and the pick". By the time it was dissolved it was inhabited only by the lowest lawyers and those struck off the rolls, and when surveyed it was found that it was run by only two Ancients, neither of whom had any idea what their duties were, and

676-411: A year during the reign of Elizabeth I with 24 in permanent residence. When it was an institute of legal education, it enforced the odd practice of fining a student when he got something wrong: a halfpenny for a defective word, a farthing for a defective syllable and a penny for an improper word. Barnard's was under the supervision of Gray's Inn, who traditionally sent a Reader to the Inn every year, who

728-452: Is a dispute between the parties on a project, the Adjudicator will follow the clauses within this contract in order to come to a decision. Design Build and Operate (DBO) The NEC4 Design, Build and Operate Contract (DBO) allows the procurement of a more integrated whole-life delivery solution. It combines responsibility for design, construction, operation and/or maintenance, procured from

780-418: Is a fairly slim contract) and then the individual clauses within the chosen contract for that package. Different work packages can be let using different contracts during the life of the framework. Term Service Contract (TSC) For parties on a project that is operational or maintenance based, e.g. maintaining highway signage, where the contract is to ensure that a certain standard is maintained. This contract

832-443: Is a family of standard contracts, each of which stimulate good management of the relationship between the two parties to the contract and, hence, of the work included in the contract, can be used in a wide variety of commercial situations, for a wide variety of types of work and in any location, and are clear and simple documents using language and a structure which are straightforward and easily understood. The contracts legally define

884-462: Is intended to be suitable for any sector of the industry, including civil, building, nuclear, oil and gas, etc. Within the ECC contract there are six family level options, from which the Employer is to choose the most suitable and offer the best option/value for money on that project: These options offer a framework for tender and contract clauses that differ primarily in regard to the mechanisms by which

936-460: Is not generally used for constructing new works, but can include some amount of betterment. There is also a "Term Service Short Contract" where the project is a relatively low risk project and/or the work is primarily re-active. It is an abbreviated version of the main TSC. Supply Contract/Short Supply Contract (SC/SSC) These contracts were launched in 2010. This is for a supplier of supplies or goods to

988-414: Is the main contract used for any construction based project. It now sits alongside a number of other contracts, making the NEC suite suitable for use in many stages of the lifecycle of a project and for any party within a project. The contracts available within the suite are: Engineering and Construction Contract (ECC) : Suitable for any construction based contract between an Employer and a Contractor. It

1040-649: The Joint Contracts Tribunal , JCT forms. For civil engineering the need for a formalized approach to contracts led the Institution of Civil Engineers (ICE) to produce a formalised set of conditions of contract. In 1986, the ICE commissioned the development of a new form of contract as it was felt that there was a need for a form that had clearer language, clearer allocation of responsibilities and reduced opportunities for contractual “gamesmanship”. In 1991, this resulted in

1092-556: The Law Society of England and Wales in 1825, a single unified professional association for solicitors, the purpose of the Inns died out, and after a long period of decline the last one ( Clement's Inn ) was sold in 1903 and demolished in 1934. The Inns of Chancery evolved in tandem with the Inns of Court . During the 12th and early 13th centuries the law was taught in the City of London , primarily by

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1144-631: The Outer Temple , was said to exist by the legal historian John Baker in 2008. This is denied by other writers. ) Many Inns were originally independent of the Inns of Court, and fell in and out of allegiance with them, with some claiming independence right up to the nineteenth century. Most Inns became directly attached to Inns of Court during the sixteenth century, however, when the Inns of Court began charging higher acceptance fees to students trained in independent Inns of Chancery than they did to students trained in "their" Inns of Chancery. Clement's Inn

1196-478: The civil law within the City of London. These schools were based in hostels or "inns", which later took their name from the landlord of the inn in question. The Inns of Chancery sprung up around the Inns of Court, and took their name and original purpose from the chancery clerks, who used the buildings as hostels and offices where they would draft their writs. As with the Inns of Court the precise dates of founding of

1248-469: The ECC contract above, but allows the contractor to sub-let the project to a subcontractor imposing most of the clauses that she/he has within her/his headline contract. There is very little difference between the ECC and the ECS, other than the names of the parties are changed (contractor and subcontractor) and some of the timescales for contractual responses are altered to take into account the timescales required in

1300-457: The ECC contract, there are several main options: Options B, D and F do not exist. The Professional Services Short Contract (PSSC) This was added to the family in April 2013 and was co-developed with the Association for Project Management . It is for simpler less complex assignments than the PSC, such as the appointment of small team for managing an ECC contract on the Employer's behalf. E.g.

1352-494: The ECC contract. The Engineering and Construction Short Contract (ECSC) This is an abbreviated version of the ECC contract and most suitable when the contract is considered "low risk" (not necessarily low value) on a project with little change expected. This contract is still between the employer and contractor but does not use all of the processes of the ECC making it simpler and easier to manage and administer. The Engineering and Construction Short Subcontract (ECSS) Allows

1404-463: The Inn had not dined for over a century. The Inn was dissolved in 1863, pulled down in 1868 and replaced with the third Globe Theatre . Clifford's Inn was the oldest of the Inns of Chancery, and was first mentioned in 1344. Although generally considered a dependent of the Inner Temple, its members always maintained that they were independent. As a note of that "independence" it became custom for

1456-456: The Inner Temple to send them a message once a year, which would be received but deliberately not replied to. Their coat of arms was a modified form of the Clifford family arms, with "cheque or and azure, a fess gules, a bordure, bezantée, of the third." Noted students include John Selden ; Sir Edward Coke was also said to have studied there, but historical records find no evidence of this, and he

1508-481: The Inns gradually changed their purpose, and became both the offices and accommodation for solicitors (as the Inns of Court were to barristers) and a place of initial training for barristers . The practice of training barristers at the Inns of Chancery had died out by 1642, and the Inns instead became dedicated associations and offices for solicitors. With the founding of the Society of Gentleman Practisers in 1739 and

1560-433: The Inns of Chancery are unknown, but the one commonly said to be the oldest is Clifford's Inn , which existed from at least 1344. Thavie's Inn , founded in 1349, is considered to be the next oldest, and several legal historians mistakenly considered it the oldest of them all. For several centuries, education at one of the Inns of Chancery was the first step towards becoming a barrister . A student would first join one of

1612-541: The Inns of Chancery at any one time. At the same time, the Inns of Chancery was used as accommodation and offices by solicitors , the other branch of the English legal profession. During the sixteenth and seventeenth centuries the purpose of the Inns changed. After the outbreak of the First English Civil War in 1642, the practice of teaching barristers in the Inns ceased, and as a result the Inns of Chancery became

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1664-483: The Inns of Chancery, where he would be taught in the form of moots and rote learning . He would also be taught by Readers sent from the Inn of Court that his Inn of Chancery was attached to, who would preside over the moots and discuss cases with the students. At the end of each legal term, particularly promising students would be transferred to the parent Inn of Court and begin the next stage of their education. By 1461 there were approximately 100 students studying at

1716-484: The Project Manager and Supervisor. It is frequently used as a subcontract to the PSC for design work. Framework Contract (FC) Parties enter into a "framework" of which work packages will then be let during the life of that framework. Any individual projects will then be awarded using one of the other contracts within the suite, meaning that the parties follow the headline clauses within the framework contract (which

1768-525: The UK Cabinet Office recommends the use of NEC contracts by public sector construction procurers on construction projects. NEC documents use some of their own terminology in a specific manner, for example "compensation event" is a term used to encompass variations, losses and expenses, and extensions of time . The term implies that in some situations the contractor will be "compensated" with additional payment, e.g. for additional expenses incurred as

1820-449: The clergy. But during the 13th century an event occurred which ended legal education by the Church. A papal bull in 1218 prohibited the clergy from practising in the secular, common law courts. As a result, law began to be practised and taught by laymen instead of by clerics. To protect their schools from competition, Henry II and Henry III issued proclamations prohibiting the teaching of

1872-479: The contract date to have such a small chance of occurring that it would have been unreasonable for her/him to have allowed for them. Inns of Chancery The Inns of Chancery or Hospida Cancellarie were a group of buildings and legal institutions in London initially attached to the Inns of Court and used as offices for the clerks of chancery , from which they drew their name. Existing from at least 1344,

1924-541: The contractor is paid and how risk is allocated and motivated to control costs. The core clauses (of the main option listed above) are used in conjunction with the secondary options and the additional conditions of contract. The clauses of these options have been be adapted for simpler less risky work (short contracts), for use as subcontracts, and for professional services such as design as below. The Engineering and Construction Subcontract Contract (ECS) Very similar in detail and complexity of contractual requirements to

1976-491: The contractor to sub-let a simpler lower risk contract down the line to a subcontractor. It is back-to-back with the ECSC but is frequently used as subcontract when the main contract is under the ECS. The Professional Services Contract (PSC) This contract is for anyone providing a service, rather than undertaking any physical construction works. Designers are the most obvious party to fit into this category. Whilst they are producing

2028-456: The different contracts listed above comes with its own set of guidance notes and flowcharts which should aid understanding of the intent of the drafted clauses. The guidance notes expand on each clause to give extra substance and intent of the original drafters as to how a clause should be understood and interpreted. The flowcharts then map out each of the main processes within each contract and demonstrate how it should operate and what to do next if

2080-630: The ease of administration. It also introduced two new contracts: the NEC4 Design, Build and Operate Contract (DBO) and the NEC4 Alliance Contract (ALC). An NEC4 contract suite covering facilities management was released in 2021. Several changes to terminology were introduced in NEC4, for example: One former NEC3 clause which dealt with the "spirit" of the contract was divided into two clauses, to show that both aspects should be complied with: The NEC

2132-569: The great fire of London and were rebuilt in the seventeenth century, and again in the nineteenth. The Inn was shut down and the building sold to the Prudential Assurance Company in 1884, and part of it is now used as the headquarters of the Institute of Actuaries . Barnard's Inn, originally known as Mackworth's Inn after its owner, John Mackworth , was established in 1454 as an Inn of Chancery. A large Inn, Barnard's had 112 students

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2184-440: The purpose of the buildings and that an 1850 investigation had failed to uncover their origins. The last Inn to be sold was Clement's Inn , which was sold in 1903, and demolished in 1934. John Fortescue wrote of ten Inns of Chancery, each one attached to an Inn of Court "like Maids of Honour to a Princess". Only nine are known of in detail; the other was St George's Inn. The ten Inns were: (An eleventh Inn of Chancery,

2236-594: The responsibilities and duties of Employers (the party which commissions the work) and Contractors (the party which carries out the work) in the works information. The contract consists of two key parts, divided between contract data provided by the Employer and that provided by the Contractor. The NEC3 complies fully with the Achieving Excellence in Construction (AEC) principles. The Efficiency and Reform Group of

2288-479: Was absorbed into that Inn. Thomas Occleve was said to have studied at Strand Inn. New Inn was founded in the late 15th century on the premises of Our Lady Inn, a hostel. Noted students included Sir Thomas More , who attended New Inn before going to Lincoln's Inn . The buildings of New Inn were pulled down in 1902 to make way for a road between Holborn and the Strand . After the destruction of Strand Inn, New Inn

2340-592: Was always associated with Lyon's Inn more than Clifford's. The first lawyers to occupy the premises which later became the Middle Temple came from St George's Inn, arriving by 1346. The inn was later deserted in favour of New Inn. Strand Inn, also called Chester Inn, was the shortest lived of the Inns of Chancery. Founded in the fifteenth century it was pulled down in the 1540s by Lord Somerset in his role as Lord Protector so that he could build Somerset House . The students instead went to New Inn, and Strand Inn

2392-1004: Was endorsed by the Construction Clients' Board (formerly Public Sector Construction Clients' Forum), Crown Commercial Services , the Facilities Management Board of the UK Cabinet Office, the South African Construction Industry Development Board, the International Organization for Standardization (ISO), the Association for Project Management (APM) and the British Institute of Facilities Management (BIFM). The Hong Kong government decided to use NEC3 contracts generally for all government projects tendered in 2015/16. After

2444-479: Was founded around 1349. It was sold in 1769. Lawyers from Thavie's Inn were the first to occupy the premises which became Inner Temple in the 1320s. Staple Inn dated from at least 1415, and was originally an inn where wool merchants stayed and haggled. In reference to this, the Inn coat of arms contained a bale of wool. During the reign of Elizabeth I it was the largest of the Inns of Chancery, with 145 students and 69 as permanent residents. The buildings survived

2496-533: Was part of the Cabinet Office which worked in partnership with HM Treasury to form the corporate centre for UK Government . Its objectives were to reform the way government works and to support the transformation of government services by driving cost savings and focusing on growth. ERG worked collaboratively with government departments to identify common areas for savings. It aimed to help government departments to deliver at least £20bn of efficiencies in

2548-526: Was the last to be dissolved, being shut down in 1903. Located near St Clement Danes , the Inn was also named after Saint Clement and took as its coat of arms his, with a large letter C in sable . The buildings were completely rebuilt in the 19th century in the Queen Anne Style . Noted members included Sir Edmund Saunders , and William Shakespeare made Justice Shallow , a character in Henry IV, Part 2 ,

2600-478: Was the only Inn of Chancery left attached to the Middle Temple. Furnival's Inn was founded before or during the reign of Henry IV and named after the Lords Furnival. During the 1820s the Inn was completely rebuilt. Noted tenants include Charles Dickens , who began to write The Pickwick Papers whilst living there. The Inn was demolished in 1897. Thavie's Inn was the second oldest Inn of Chancery, and

2652-573: Was treated with great respect. Noted pupils included Sir John Holt , later a distinguished jurist. The Inn was badly damaged in the Gordon Riots after a rioter set fire to the distillery next door. In 1880 it was bought by the Worshipful Company of Mercers and used to house the Mercers' School . Efficiency and Reform Group The Efficiency and Reform Group (ERG), established in 2010,

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2704-652: Was used to build the High Speed 1 railway, between London and the Channel Tunnel . NEC is a division of Thomas Telford Ltd, the commercial arm of the ICE. The NEC3 suite was launched in 2005 and it was fully revised in 2013 - NEC's 20th anniversary. This suite was used in projects such as Crossrail, London 2012 Olympic and Paralympic games, Halley VI in Antarctica, and the Tin Shui Wai Hospital in Hong Kong. NEC3

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