THE NEW ENGINEERING & CONSTRUCTION CONTRACT (NEC)
by Tony Lydall - DURATION: 2-DAYS
The philosophy of the NEC is summarised in its three basic objectives – clarity, simplicity and stimulus to good management.
The NEC is essentially a system for managing the interfaces among contract stakeholders.
The NEC has been used in South Africa since 1993. The construction Industry Development Board (CIBD) Act of 1994
standardised procurement routes for all state entities. This meant that only four forms of contract, including the NEC,
could be used under the Act.
Initially adopted, by Eskom, the list of South African state organisations and private corporations using the NEC form of
contracts includes Transnet, Sasol, Anglo Platinum, Gold Fields, ABSA, Johannesburg Housing Company, Gauteng
Housing Department, University of the Witwatersrand, and Tshwane and eThekwini municipalities.