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Framework Contract
This contract should be used for the appointment of one or more suppliers over a set term to
carry out work or provide a service or goods on an 'as instructed' basis using NEC4 contracts

An NEC document
June 2017

The Government Construction Board, Cabinet Office UK

The Government Construction Board (formerly Construction Clients' Board) recommends
that public sector organisations use the NEC contracts and in particular the NEC4 contracts
where appropriate, when procuring construction. Standardising use of this comprehensive
suite of contracts should help to deliver efficiencies across the public sector and promote
behaviours in line with the principles of the Government Construction Strategy.

The Development Bureau, HKSAR Government

The Development Bureau recommends the progressive transition from NEC3 to NEC4 in public
works projects in Hong Kong. With suitable amendments to adapt to the Hong Kong local
environment, NEC4 is expected to further enhance collaborative partnering, unlock innovations
and achieve better cost management and value for money in public works projects.
=
nec
NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of the Institution
of Civil Engineers (ICE), the owner and developer of the NEC.

The NEC is a suite of standard contracts, each of which has these characteristics:

• Its use stimulates good 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.

NEC4 Framework Contract is one of the NEC suite and is consistent with all other NEC4
documents. Also available are User Guides and Flow Charts.

ISBN (complete box set) 978-0-7277-6303-7

ISBN (this document)978-0-7277-6222-1
ISBN (Establishing a Procurement and Contract Strategy) 978-0-7277-6223-8
ISBN (Preparing and Managing a Framework Contract)978-0-7277-6246-7
ISBN (Selecting a Supplier) 978-0-7277-6234-4
ISBN (Framework Contract Flow Charts)978-0-7277-6278-8(e-only)

First edition 2005, Reprinted with amendments 2013

Second edition June 2017

British Library Cataloguing in Publication Data for this publication is available from the
British Library.

O Copyright nec 2017

All rights, including translation, reserved. The owner of this document may reproduce the
Contract Data and forms for the purpose of obtaining tenders, awarding and administering
contracts. Except as permitted by the Copyright, Designs and Patents Act 1988, no part of
this publication may be otherwise reproduced, stored in a retrieval system or transmitted in
any form or by any means, electronic, mechanical, photocopying, recording or otherwise,
without the prior written permission of the NEC Director, Thomas Telford Ltd, One Great
George Street, Westminster, London SW1P 3AA.

Typeset by Manila Typesetting Company

Printed and bound in Great Britain by Bell &Bain Limited, Glasgow, UK

— nec~`T CONTENTS

Contents

Foreword v

Preface vii

Acknowledgements ix

Conditions of Contract

Contract Data
Part one —Data provided by the Client
Part two —Data provided by the Supplier

Index

OO nec 2017 I neccontract.com Framework Contract I iii

— nec •~ FOREWORD

Foreword
Continuous improvement in project delivery is required to build confidence in the UK
construction sector so that we can attract more investment. The Infrastructure and Projects
Authority (IPA) is the governments centre of expertise for infrastructure and major projects.
We sit at the heart of government, reporting to the Cabinet Office and HM Treasury.

The application of the right contract is central to the success of the overall project delivery
system. The NEC suite of contracts has been in existence for over the 20 years and has linked
the projects, people and processes together to create the correct environment for successful
delivery.

This new and updated NEC4 contract embraces the digital changes that are happening in the
construction industry, especially around BIM, which I believe will be central to creating a step
change in performance. Whilst looking forward it also builds on the fundamentals required
for an effective contract.

The use of NEC4 on public sector projects will help to deliver the Government Construction
Strategy as we seek to improve central government's capability as a construction client to
deliver further savings in the order of f1.7bn across the Government estate. The IPA looks
forward to collaborating with industry to make the delivery of projects more efficient and
effective.

Tony Meggs, Chief Executive, Infrastructure and Projects Authority

Infrastructure
and Projects
Authority
Reporting to Cabinet Office
and HM Treasury

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Framework Contract I v
— nec~`T PREFACE

Preface
NEC was first published as a new and innovative way of managing construction contracts in
1993 —some 24 years ago. It was designed to facilitate and encourage good management of
risks and uncertainties, using clear and simple language.

The NEC approach to managing contracts was endorsed in "Constructing the team —The
Latham Report", which was agovernment/industry review of procurement and contractual
arrangements in the UK construction industry. This led to a second edition in 1995
incorporating the further recommendations of that review. This contract was used increasingly
in the UK and overseas, and a major revision was made with the third edition in 2005.

NEC has played a part in helping the industry do things differently and better. It has done
so by introducing effective project management procedures into the contract itself. These
require pro-active management of risk and change, and the day-to-day use of an up-to-date
programme. The range of pricing options has given Clients flexibility in the allocation of risk
and the ability to share risk and manage it, collaboratively.

The NEC suite has evolved over three decades, embedding consultation responses and user
feedback, and reflecting industry development, including new procurement approaches and
management techniques such as alliances, management of information (BIM) and supply
chain engagement. This feedback and the new procurement approaches formed the driver
for the development of the next generation contracts and the launch of NEC4.

There were three key objectives in drafting NEC4:

E provide greater stimulus to good management

support new approaches to procurement which improve contract management and

inspire increased use of NEC in new markets and sectors.

it was to be evolution, not revolution.

Some features of NEC4 include:

anew design build and operate contract to allow flexibility between construction and
operational requirements in timing and extent
• anew multi-party alliance contract based upon an integrated risk and reward model
• new forms of subcontract to improve integration of the supply chain.

Further enhancements include:

• finalising cost elements during the contract

• incorporating aparty-led dispute avoidance process into the adjudication process

• increasing standardisation between contracts and

m providing enhanced guidance to give greater practical advice to users.
NEC has always been known for its innovative approach to contract management, and this
revision continues that approach. No other contract suite has had such a transformative effect
on the built environment industry as NEC. It has put the collaborative sharing of risk and
reward at the heart of modern procurement. It is also unique in providing a complete, back-to-
back procurement solution for all works, services and supplies in any sector and any country.
NEC4 continues to set the benchmark for best practice procurement worldwide.

Peter Higgins BSc (lions), CEng, FICE

Chair of NEC4 Contract Board

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Framework Contract I vii
 — nec~'T ACKNOWLEDGEMENTS

Acknowledgements
The original NEC was designed and drafted by Dr Martin Barnes then of Coopers and
Lybrand with the assistance of Professor J. G. Perry then of the University of Birmingha
m,
T. W. Weddell then of Travers Morgan Management, T. H. Nicholson, Consultant to the
Institution of Civil Engineers, A. Norman then of the University of Manchester Institute of
Science and Technology and P. A. Baird, then Corporate Contracts Consultant, Eskom, South
Africa.

This fourth edition of the NEC suite was produced by the Institution of Civil Engineers
through its NEC4 Contract Board.

The NEC4 Contract Board is:

P. Higgins, BSc (Hons), CEng, FICE (Chair)

P. T. Cousins, BEng (Tech), DipArb, CEng, MICE, FCIArb
I. Heaphy, BSc (Hons), FRICS, FCIArb, MCInstCES, MACostE
J. N. Hughes-D'Aeth, BA (Hons), MA (Cantab)
S. Rowsell, BSc, CEng, FCIHT, FICE, MCIPS

The NEC4 drafting team consisted of:

M. Garratt, BSc (lions), MRICS, FCIArb

R. Gerrard, BSc (lions), FRICS, FCIArb, FCInstCES
R. Hayes, BSc (lions), MEng, CEng, MICE, MAPM
S. Kings, BSc (lions), MRICS, MCIPS, PhD
T. Knee-Robinson, BEng (lions), CEng, MICE, MAPM, MCIHT
J. J. Lofty, MRICS
R. Patterson, BA, MBA, CEng, MICE
B. Trebel, BSc (lions), MSc, FRICS, FlnstCES, FAPM
B. Walker, BSc (lions), GMICE, ACIArb

Proofreading by:

P. Waterhouse, BEng (lions), MBA, CEng, FICE, FCIArb, FCInstCES, FCMI

The Institution of Civil Engineers acknowledges the help in preparing the fourth edition
given by the NEC4 Contract Board and NEC4 drafting team and the support of the
following
organisations in releasing their staff:

Anthony Collins Solicitors LLP

Berwin Leighton Paisner LLP
CEMAR
Costain plc
Mott MacDonald Ltd

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Framework Contract I ix
 — nec •
? CONDITIONS OF CONTRACT

Conditions of Contract
Actions 10
10.1 The Parties and the Client's Representative shall act as stated in this
contract.
10.2 The Parties and the Client's Representative act in a spirit of mutual trust
and co-operation.
Identified and 11
defined terms 11.1 In these conditions of contract, terms identified in the Contract Data
are in italics and defined
terms have capital initials.
11.2 (1) A Corrupt Act is

• the offering, promising, giving, accepting or soliciting of an advantage

as an inducement
for an action which is illegal, unethical or a breach of trust or

abusing any entrusted power for private gain

in connection with this framework contract or any other contract

with the Client. This
includes any commission paid as an inducement which was not declared
to the Client before
the date this contract came into existence.

(2) Framework Information is information which specifies how the Parties

work together and
is in the document which the Contract Data states it is in.

(3) The Parties are the Client and the Supplier.

(4) A Time Charge Order is a contract to provide advice on a propose

d Work Order on a time
charge basis.

(5) A Work Order is a contract to carry out work within the framework
scope.
Communications 13
13.1 Each communication which the contract requires is communicated
in a form which can be
read, copied and recorded.
13.2 A communication has effect when it is received at the last address
notified by the recipient
for receiving communications or, if none is notified, at the address
of the recipient stated in
the Contract Data.
The Clients 14
Representative 14.1 The Client may replace the Client's Representative after notifying
the Supplier of the name of
the replacement.
Corrupt Acts 18
18.1 The Supplier does not do a Corrupt Act.
The Parties' ■
20 .~
obligations a
20.1 The Supplier obeys an instruction which is in accordance with the
contract and is given by z
the Client's Representative. O
v
20.2 The Supplier attends meetings with the Client's RepresentaTive and
others as stated in the
Framework Information.
20.3 The Supplier does not do any work until it has received a Work Order
or Time Charge Order
for that work.
Supplier selection 21
21.1 When the Client requires work to be carried out within the framewo
rk scope, the Client's
Representative uses the selection procedure to decide if the Supplier
will be considered for
the work.

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Framework Contract I 1
 — nec~'T CONDITIONS OF CONTRACT

Time Charge Order 22

22.1 If the Supplier is selected for a Time Char
ge Order, the Client's Representative issues
Charge Order to the Supplier. The Client's Repre a Time
sentative consults with the Supplier about
the contents of a Time Charge Order befor
e it is issued.
Quotation 23
23.1 If the Supplier is to be considered for a propo
sed Work Order, the Clients Representative
provides the additional Contract Data, Scope
, Site Information and pricing document as
applicable for the work and instructs the
Supplier to provide a quotation.
23.2 The Supplier provides a quotation in accor
dance with the quotation procedure and submi
details of its assessment with the quotation. ts
The Supplier's assessment is made using the
quotation information.
23.3 The Client's Representative assesses the Suppl
ier's quotation in accordance with the
quotation procedure.
Z3.4 The Client's RepresenTative replies to the submi
ssion within the period stated in the Contract
Data. The reply is
• the issue of a Work Order accepting the quota
tion,
• an instruction to submit a revised quotation or
• a notification that the proposed Work Order will
not be issued to the Suppliei
23.5 If a revised quotation is instructed, the Client's
Representative advises the Supplier of the
reasons for not accepting the quotation. The
Supplier submits a revised quotation within the
period stated in the instruction.
Completion 30
30.1 After the end date,

• the Client's Representative does not issue

a Time Charge Order or Work Order and
• the Supplier completes work under Time
Charge Orders and Work Orders issued befor
the end date. e
Termination 90
90.1 Either Party may terminate their obligation
s under the contract at any time by notif
other Party. ying the
90.2 After a Party has notified termination,

• the Client's Representative does not issue

a Time Charge Order or a Work Order and
• the Supplier completes work under Time
Charge Orders and Work Orders issued befor
the notification. e
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 — nec m~ CONTRACT DATA

Contract Data

The Data which will apply to all work under the

Framework Contract is
The conditions of contract are the clauses of the NEC4
Framework Contract June 2017 and
any additional conditions of contract. G
The Client is z
0
Name 0
z
Address for communications 0
0
z
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Address for electronic communications

The Client's Representative is

Name

Address for communications

Address for electronic communications

The Framework Information is in

The framework scope is in

The selecTion procedure is in

The quotation procedure is in

The end date is

The period for reply to a Supplier's

quotation is
If additional conditions of The additional conditions of contract are
contract are required

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Framework Contract ~ 3
 — nec m~ CONTRACT DATA

The Data which will apply to all Time Charge

Orders is
(The NEC4 Professional Service Short Contract would
normally be used for Time Charge
Orders. Include the relevant Contract Data, Price List and
Scope entries which apply to all
Time Charge Orders.)

The Data which will apply to all Work Orde

rs is
(Include the relevant Contract Data part one entries for
the NEC4 contracts that may be used
for a Work Order. If NEC4 short contracts are to be used
also include relevant entries for the
Contract Data, Price List and Scope)
z
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V

Z
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framework Contract
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