NEC have attempted to bring the facilities management sector into the 21st century with their new suite of contracts. The latest suite replaces the old NEC3 which were brought to market in 2005. These updates are a welcome introduction, clearing up some of the grey areas not covered in the previous contracts.
By writing a sector-specific version of the contract, there is hope that much needed evolution in the industry can take place.
The NEC4 suite is designed to align strategic and operational goals between operators and managers, ensuring the smooth delivery of services and preventing any future problems.
The contracts have been produced in conjunction with the Institute of Workplace and Facilities Management (IWFM) and have been designed to be written in plain English, using much of the terminology already familiar to operators in the space.
Fundamentally the contracts are designed to improve efficiencies and avoid disputes. Like any contract their success will largely be dependent on all parties abiding by the terms of the agreement, but the hope is the additional clarity and the early warnings of any problems that are written into the contract will avoid small issues escalating into larger problems down the line.
The main NEC4 principles
The new contracts aim to improve the facilities management sector by embodying the following main principles…
● Stimulating effective and clear management of the relationship between the two parties involved in the contract. By doing this, the work produced as per the contract should be bound to certain standards.
● The contracts can be used in a sufficiently wide variety of commercial situations. This opens up the contracts for use in multiple locations and across different sectors of the facilities management industry.
● Ensure that the contracts are clear, written to be understood by everyone and free of vagaries. They are written in a language and with a structure that outlines the terms of the deal in plain sight. The contracts are not designed to be full of loopholes, allowing sides to point score and take advantage.
There’s a genuine sense of enthusiasm for the contracts in the industry, with NEC receiving praise from many industry commentators.
The hope is that by simplifying the terms by which facilities and services providers operate, conflict resolution will be a much easier and clearer process and that costly, time consuming litigation will be a thing of the past.
The contracts will allow much easier and simpler collaboration between parties and that can only be a good thing.
Working clarity is the future of the sector…
At MPS we’ve long been advocates for clearer relationships and project delivery in the construction, facilities management and civil engineering industries. We’ve made it our business to make life easier for our construction and engineering partners.
We believe that simplicity is key for effective communication, and when we communicate clearer, we’re more effective operators.
To help with your contract management, visit the MPS website to see how our unique CCM Contract Management System can revolutionise the way you do business or call 01223 597933 or email firstname.lastname@example.org