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The NEC Construction and Engineering Contract: to amend or not to amend?

Paper number
D123

Mike Barlow

April 2011

A paper based on the joint highly commended prize entry in the Hudson Prize essay competition 2010 presenting to a meeting of the Society of Construction Law in London on 3rd May 2011

Mike Barlow's paper highlights certain legal issues arising from NEC3 (the third edition of the contract), namely the language and terminology adopted, the absence of various market standard provisions and certain specific differences in NEC3's risk profile compared with conventional construction contracts; he goes on to consider the interaction between the compensation event regime and the Employer's and Contractor's risks.

Introduction - The aims of this paper - Lack of reported cases on NEC3 disputes - The language and terminology of NEC3 - An invitation to add Z clauses? - Specified perils / existing structures - Interim payments under Option A - Employer's Risks and Contractor's risks - Interaction between Employer's and Contractor's risk with compensation events - Summary - Conclusion.

Mike Barlow is a partner in the Construction Group at MacRoberts LLP in Edinburgh.

Text 13 pages.