Year
1993Duration
25 years and countingCost
UnknownLocation
GlobalProject achievements
Economy boosted
NEC has achieved cost savings on the delivery of many projects
Solved the problem
A way to draft contracts that don’t end up in big arguments
Used engineering skill
Years of research, industry collaboration and users’ feedback produced a fair contract process
The aim of NEC has always been to stimulate good project management
The New Engineering Contract (NEC) is a series of contracts designed to manage any project from start to finish.
The contracts are written in plain English with a straightforward structure and are designed to be easily understood.
NEC contracts aim to prevent costly disputes. First developed in 1993, they were designed to replace typical construction contracts which until then had been largely ‘adversarial’ in approach.
An adversarial contract is one where people who’ve signed up to it are likely to act in their own interests if something goes wrong.
Adversarial contracts can mean companies going out of business when they’re hit with severe contract penalties – for example when a project falls behind schedule.
NEC contracts are endorsed by governments and industry bodies. They have a strong track-record for helping to deliver large-scale projects successfully.
Did you know …
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Like other engineers at the time, Victorian super-engineer Isambard Kingdom Brunel was well-known for drawing up contracts along adversarial lines.
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Brunel’s terms and conditions made life so difficult for sub-contractors that towards the end of his career it was very difficult to get anyone to tender for a scheme where he was the engineer.
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Brunel died in 1859. It was another 15 years before all the outstanding claims and cases connected to the engineer’s projects were settled in court.
Difference the contracts have made
NEC contracts look after the client’s interests while still protecting the contractor’s profit.
They help clients achieve more certainty about the outcome of a project and make sure contractors are paid fairly and promptly.
NEC contracts have been used for many high profile infrastructure schemes, such as:
- Crossrail
- Christchurch International Airport
- London 2012 Olympic and Paralympic Games
- Heathrow’s Terminals 2 & 5C
- Halley V1 British Antarctic Survey research station.
How the contracts evolved
The first NEC contract, then known as the New Engineering Contract, was published in 1993 after seven years research and development.
The contract was viewed as a departure from existing legal documents as it was written in plain English and designed to encourage good project management.
The second edition, the NEC Engineering and Construction Contract, appeared in 1995. Accompanying publications included a professional services contract and an adjudicator’s contract designed to help settle disputes.
The NEC contracts saw 10 years of use around the world until the publication of the NEC3 contract range in 2005. The NEC3 contracts have successfully delivered £100bn-worth of works, services and supply around the world.
In 2017, NEC4 launched with updated contracts and improvements in flexibility, clarity and ease of use.
In 2022, NEC introduced the Secondary Option X29 clauses to help tackle climate change. Their aim is to support the industry to achieve net zero and sustainability targets by considering them at every stage of an asset's lifecycle.
In May 2024, Singapore's Building and Construction Authority (BCA) announced the take-up of NEC4 for construction and engineering projects in the country.
In August of the same year, NEC partnered with the Ministry of Economy and Finance (MEF) for Peru to publish an official Spanish translation of the entire NEC4 Contract suite. This includes user guides and training programmes.
The partnership means the NEC suite of contracts has become Peru’s preferred framework for infrastructure projects.
In June 2025, the Framework Alliance Contract (FAC-1) and Term Alliance Contract (TAC-1) were acquired to sit alongside NEC, uniting all leading collaborative contracts under one banner.
In November 2025, it launched NEC Digital, an online contract drafting platform.
This digital tool guides users throughout the whole drafting process, with intuitive navigation and side-by-side views of the relevant options and clauses available.
"I think NEC is the unsung hero of the Olympic Games, a bit like the spine or the heartbeat in the human body. I believe it helped deliver the project.”
KEN OWEN, commercial director of CLM which project-managed construction of Olympic venues for the London 2012 Games.
Project milestones
The first New Engineering Contract is published
The second edition, titled NEC Engineering and Construction Contract, is released
The NEC3 contract range is published
NEC4 launches with updated contracts
NEC introduces the Secondary Option X29 clauses to help tackle climate change
The Singapore government adopts NEC4 contracts
NEC partners with the Peruvian government to publish an official Spanish translation of NEC4
Thomas Telford Ltd acquires the Framework Alliance Contract (FAC-1) and Term Alliance Contract (TAC-1) to sit alongside NEC
People who made it happen
- The New Engineering Contract was originally drafted by Martin Barnes.
