February 17, 2023

What are the amendments to the NEC4 contract?

News Article

The NEC4 amendments for 2023 are now available. These changes are based on feedback from previous NEC users.

If you’re thinking about taking out a contract for your project, these amendments could benefit you. Here, Adam Davis, a Director at Palmers and Head of our Construction Law department, outlines the key changes you need to be aware of:

What are the amendments based on?

The NEC4 contracts were first made in 2017 and since then, the NEC has been gathering feedback on the contracts and how they could be improved.

The feedback has been provided by users of the contract in the construction industry. This includes ideas on changes and features which could be made to develop the contracts.

What changes have been suggested?

The NEC has responded to suggestions to ensure eco-friendly initiatives are prioritised in construction projects.

NEC users will need to show their drive towards achieving net zero greenhouse gas emissions alongside reaching other climate and biodiversity targets.

Amendments have also been made to consider the location of contractors working on construction projects. This will now take into account the distinction between directly and indirectly employed staff.

Another change is that the NEC have clarified and extended information on the ability of the client to use the suppliers design. All documents must now be prepared and accessible for design.

In terms of dispute resolution, option W2 has been amended meaning that the Adjudicator will now decide the procedure and timescale for adjudication in line with legal requirements.

What do these changes mean for you?

If you are taking out an NEC contract, you should consider how these changes may affect you.

These amendments will improve the construction process and include practical new modifications which may be applicable to your development.

It is important to ensure you get the most out of your contract and keeping up to date with the latest changes can benefit your project.

For advice on construction contracts including NEC contracts and how to choose the right one for your project, please contact us.