Mastering the NEC4 Contract: Key Tips and Strategies

Episode #7

Get ready to unlock the secrets of NEC4, the groundbreaking engineering and construction contract!

NEC4 isn't just a contract – it's a game-changer designed for collaboration in building and engineering projects. Jacob breaks down the six key options, unveiling a world of possibilities. But it's not just about contracts; it's about creating a web of trust and cooperation among all players.

Hold onto your hardhats as Jacob delves into the nitty-gritty. From early warning notices to compensation events, he's got you covered. Need to adjust time and the program? Jacob's your go-to guru. Pricing compensation events and acceleration? Yep, he's got tips to keep your business soaring

KEY TAKEAWAYS

  1. NEC4 is a set of flexible contracts for procuring buildings and engineering projects, commonly used in government procurement.

  2. The NEC4 contract emphasizes the need for all parties to act in a spirit of mutual trust and cooperation.

  3. Early warning notices are a risk management tool in NEC4 contracts, allowing parties to notify each other of potential issues before they become problems.

  4. Compensation events are matters that increase costs, delay completion, or impair the performance of the work, and must be notified within seven weeks.

  5. Pricing compensation events in NEC4 contracts requires careful consideration of direct works costs, prelims, management, and any time impacts, with a one-bite-at-the-cherry approach.

BEST MOMENTS

  1. "The concept of an early warning notice is pretty bespoke to the NEC forum. It doesn't appear in the traditional JCT kind of contract and it's really there as a risk management tool."

  2. "The brilliant bit around this contract is that both the time and the cost are dealt with by the same event."

  3. "So the important thing about time is that you have the completion date, you have the planned completion date and you also have these other parts which are key dates."

  4. "The contract requires submission of a notice for any matter which increases the total of the prices, delays completion, delays meeting a key date or impairs the performance of the work."

  5. "The completion date remains as it was and it's that date that governs when things like damages might start to apply."

HOST BIO

Meet Jacob Austin, a Chartered Quantity Surveyor with a rich background at industry giants Balfour Beatty, Kier, and Vistry Group. With extensive involvement in education, health, and residential projects spanning various scales, from £1000s to £100M, Jacob brings a unique perspective. Having collaborated with numerous small businesses, he's now committed to sharing his expertise to drive their success. Join Jacob on his podcast, where he blends his profound insights and personable approach to offer guidance, industry secrets, and inspirational stories.

LinkedIn - www.linkedin.com/in/jacob-austin/

Instagram - www.instagram.com/qs.zone/

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This show was brought to you by Progressive Media