CLC publishes guidance on COVID-19 impact for NEC4
In July 2021, guidance on how clients and construction firms can collaborate to avoid disputes related to the COVID-19 pandemic under NEC4 contracts was published. The Construction Leadership Council (CLC) in collaboration with NEC published joint guidance on dealing with - and accommodating - the impact of COVID-19 on work under NEC4 contracts.
The guidance adds to the suite of outputs from the CLC's Business Models: Contractual Best Practice group which has routinely called for strategic collaboration between clients and the supply chain to avoid systemic market failures and compromised project delivery.
The guidance focuses on the NEC4 Engineering and Construction Contract (ECC), although it can also be applied to the NEC4 Engineering and Construction Subcontract (ECS), NEC3 ECC and ECS, subject to some amends which are outlined within the guidance.
To help clients and the supply chain to collaborate, the joint guidance offers support in navigating a number of circumstances within the context of the COVID-19 pandemic, including:
- Act of prevention.
- Project manager's instructions.
- Compensation events.
- Evaluation of a COVID-19 related compensation event.
- Working areas.
- Resource utilisation.
- Dealing with risk on future contracts.
Steve Bratt, Chair of the CLC's Business Models Workstream, said, "Following previous guidance, CLC remained open to industry feedback, and this guidance was developed in response to a series of questions which were raised with regard to projects impacted by COVID-19 operating under NEC contracts.
"As industry continues to manage the challenges of COVID-19, we are becoming increasingly concerned that many outstanding disputes remain unresolved and much uncertainty exists with regard to future contracts. We are therefore keen to do all we can to ensure clients work with their supply chains to fairly and collaboratively manage the commercial risks caused by COVID-19. Safety is paramount, but collaborative risk sharing will ensure secure project delivery and a long-term sustainable industry.
"COVID-19, safe working procedures and wider disruption has presented all parties with unquantifiable and unmanageable risks and costs. Traditional behaviours, such as inappropriate risk transfer, will not only lead to a negative outcome on individual contracts but will almost certainly lead to systemic failure in a fragile market seeking to build back greener and better."
Peter Higgins, Chairman of the NEC4 Contract Board, said, "NEC is pleased to have worked with the Construction Leadership Council in preparing this advice on dealing with COVID related issues under NEC contracts. NEC has always been a contract focusing on the parties working together to achieve a successful contract, and this guidance will help in managing collaboratively the risks which have arisen from COVID-19."
This article originally appeared on the CIAT website. It was published on 27 July 2021.
--CIAT
[edit] Related articles on Designing Buildings Wiki
- Alternative dispute resolution for construction ADR.
- CIAT articles.
- CLC urges inclusion of fluctuations provisions in contracts.
- Construction Leadership Council CLC.
- Extension of time EOT in construction contracts.
- NEC3.
- NEC4.
[edit] External resources
Featured articles and news
HBPT and BEAMS Jubilees. Book review.
Does the first Labour budget deliver for the built environment?
What does the UK Budget mean for electrical contractors?
Mixed response as business pays, are there silver linings?
A brownfield housing boost for Liverpool
A 56 million investment from Homes England now approved.
Fostering a future-ready workforce through collaboration
Collaborative Futures: Competence, Capability and Capacity, published and available for download.
Considerate Constructors Scheme acquires Building A Safer Future
Acquisition defines a new era for safety in construction.
AT Awards evening 2024; the winners and finalists
Recognising professionals with outstanding achievements.
Reactions to the Autumn Budget announcement
And key elements of the quoted budget to rebuild Britain.
Chancellor of the Exchequer delivers Budget
Repairing, fixing, rebuilding, protecting and strengthening.
Expectation management in building design
Interest, management, occupant satisfaction and the performance gap.
Connecting conservation research and practice with IHBC
State of the art heritage research & practice and guidance.
Innovative Silica Safety Toolkit
Receives funding boost in memory of construction visionary.
Gentle density and the current context of planning changes
How should designers deliver it now as it appears in NPPF.
Sustainable Futures. Redefining Retrofit for Net Zero Living
More speakers confirmed for BSRIA Briefing 2024.
Making the most of urban land: Brownfield Passports
Policy paper in brief with industry responses welcomed.
The boundaries and networks of the Magonsæte.