NEC has released the consultation draft of the new NEC4 Alliance Contract.
NEC4 introduces four new contracts to the NEC suite: the NEC4 Design Build and Operate Contract (DBO), the NEC4 Professional Services Short Contract (PSSC), the NEC4 Supply Short Contract (SSC) and the NEC4 Alliance Contract (ALC).
The ALC was published initially in a consultation form to allow feedback from users to ensure that it meets the needs of the industry.
Download consultation document.
Why an Alliance Contract?
The construction industry recognises the benefits that integration and collaboration can bring to the delivery of major projects and programmes of work.
NEC contracts allow all members of the supply chain to be engaged on similar terms and conditions. However, these are still bi-party arrangements and NEC users have requested the development of a distinct alliancing form in which all participants can be engaged under a single multi-party contract.
This has led to the development of the NEC4 Alliance Contract (ALC) which will support clients who wish to take a step forward by fully integrating their delivery team.
The basis of the contract is that all parties work together in achieving client objectives, and share in the risks and benefits of doing so.
Ian Heaphy, from the NEC4 Contract Board, says “The reason why we created the Alliance Contract was the fact that there was a need to have a more collaborative contract, whereby we have a single contract form that all members of the supply chain can sign up to, including the clients. A performance based contract with shares risks, shared responsibilities and aligned objectives.”
The NEC4 Alliance Contract (ALC)
The NEC4 Alliance Contract follows the principle and structure of NEC4 contracts, where appropriate.
It is a multiparty contract, where all members of the Alliance are engaged on a single set of terms and conditions. It is also a performance based contract, with shared risk or reward for achievement of the objectives set by the client.
The members of the Alliance will work together as an integrated team, where an Alliance Board manages the Alliance on behalf of the members. Any decisions of the Alliance Board need to be unanimous.
Find out more on the NEC4 Alliance Contract.
The consultation is now open and it will close on 30 November 2017.
Fill the form on this page and an automated email will be sent to you with the consultation draft and the feedback form.
For more information please contact firstname.lastname@example.org.