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New NEC3 contracts launched

Two new NEC3 contracts for the supply of goods and equipment have been launched by NEC, providing the construction and engineering sector with the first standard form contracts.
The NEC3 Supply Contract deals with the purchase of high value goods and associated services including design. It deals with the purchase of goods under a single order or as a batch, but is for those contracts which do not require sophisticated management techniques and impose only low risks on both the purchaser and the supplier.

Both deal with local and international purchase of goods and will be available from February. They join the suite of NEC contracts which are designed to facilitate sound project management and reduce the risk of costly overruns and disputes.

The new Supply Contracts deal with provision of goods rather than works or services. However, they include significant differences of detail, such as clauses to provide for carriage requirements (particularly international transfers) and the ability for the supplier to provide associated services such as training operators.

The publication of the new Supply Contracts is set to expand the scope of NEC, an offshoot of the Institute of Civil Engineers, into other areas such as the energy and manufacturing sectors where a best practice contract for supply or procurement of items is required.

'The Supply Contracts have been developed in response to a concern among industry procurement professionals that there was not a standard contract available that brought current best practice principles to the task of procuring supplies of plant, equipment and materials,' said Nigel Shaw, chairman of the NEC Panel which created the Supply Contracts.

'The key objective of the NEC3 Supply Contracts is to encourage the parties involved to work together effectively to allocate risks and create a working relationship which will ultimately provide value for money for the purchaser and a reasonable return for the supplier.'

The contracts are available to buy for £67.50 and are due to be published on February 11. For more details visit
8 January 2010


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