The New Engineering Contract and compliance: Training is the key to success
The New Engineering Contract (NEC) stands as one of the most influential frameworks in the world of civil engineering project management. Its unique approach to collaboration, risk identification, and clear communication has reshaped how complex projects are delivered. As more organisations adopt NEC contracts for their major infrastructure ventures, the demand for effective compliance and optimal use of digital tools has never been higher.
What is the NEC (New Engineering Contract)?
Launched in 1993 by the UK’s Institution of Civil Engineers, the NEC suite of contracts was designed to overhaul traditional adversarial construction agreements. NEC provides a series of contract options – covering works, services, and supply – that emphasise proactive management, risk sharing, and collaborative problem-solving throughout the project lifecycle. Unlike older contracts, NEC’s core principle is “mutual trust and co-operation,” requiring all parties to notify and address problems early.
Key features and principles
- Written in plain, easily understood English.
- Focuses on clarity and direct communication, reducing ambiguity and misunderstandings.
- Integrates project programming with explicit requirements for progress updates, risk registers, and accountability for delays.
- Demands that risks be managed collectively and proactively, not shifted solely to one party.
- Rigorous approach to documenting changes (compensation events), with prescribed processes for notification, quotation, assessment, and implementation.
Why NEC’s good practices are essential for civil engineering success
Civil engineering projects face notorious uncertainty; shifting client requirements, weather events, resource bottlenecks, and unexpected site conditions. NEC contracts are specifically designed to navigate these challenges by embedding collaborative risk management.
Collaboration and transparency
NEC demands open, regular communication and ensures involved persons raise “early warnings” for any issue impacting time, cost, or quality. These alerts aim to resolve potential problems before they escalate, saving time and money and reducing disputes. NEC’s approach is credited with improved outcomes on high-profile projects, such as the London Olympics venues and major transport infrastructure.
Integrated project management
Unlike traditional contracts such as the JCT (Joint Contracts Tribunal) – which often allocate risks at the start and value changes after the fact – NEC requires assessment of compensation events throughout the project, aligning both time and cost implications. Project managers must regularly submit updated programme timelines, clearly showing progress, potential risks, and planned actions to overcome delays.
Best practice compliance
To meet NEC demands, civil engineering teams must:
- Maintain up-to-date schedules displaying key dates, access times, planned completions, floats, and responsibilities.
- Track and manage compensation events rigorously, ensuring each stage’s documentation complies with NEC’s strict notification and response timelines.
- Cultivate a culture of mutual trust where risks are openly discussed and managed together.
- Keep robust records – every change, instruction, or programme revision must be documented per NEC guidelines.
The compliance challenge: Turning theory into practice
While NEC’s principles are sound in theory, real-world compliance is challenging. Project teams often struggle with:
- Interpreting contract terminology and requirements properly.
- Efficiently updating and demonstrating programme changes, especially in live projects with moving targets.
- Embedding early warnings and risk registers in schedules.
- Ensuring documents align with every clause, particularly for compensation events and risk allowances.
A gap in understanding or application can trigger rejected submissions, project delays, or disputes over cost and liability.
How Elecosoft training supports NEC
Elecosoft offers training courses focused on using Asta Powerproject; which is widely used to fulfill NEC’s programme requirements. One-day workshops are designed for planners, project managers, and quantity surveyors who need hands-on skills – not just theoretical knowledge – to stay compliant.
What Elecosoft Training Covers
- Building and managing critical paths: Ensuring the project’s logical flow is realistic and auditable per NEC clause 31.2.
- Displaying key dates and time risk allowances: Showing stakeholders exactly where risks lie and how they will be absorbed (clause 31.2).
- Managing types of float: So both parties understand schedule flexibility and buffers against delays (clause 31.2).
- Updating progress: Demonstrating real-time status and communicating the effects of implemented compensation events (clause 30.1 and clause 60.1).
- Documenting early warnings and mitigation actions: Embedding NEC’s early warning ethos in digital schedules and records (no longer in contract, but highly advised).
- Compliance with acceptance criteria: Ensuring project managers accept revised programmes without delay, and all contract data is accurate (clause 31.3).
The Elecosoft advantage
Training is practical, engaging, and tailored to deliver actionable skills, not just theoretical background. Participants leave with:
- Confidence to submit NEC-compliant programmes and records.
- A deeper understanding of contractual obligations and best practice communication.
- Enhanced ability to pre-empt and manage risks collaboratively.
- Access to peer discussion and real-world examples – building insights that support better outcomes for clients and contractors.
The NEC offers transformative benefits for civil engineering: clarity, collaboration, and proactive project management. Yet, tapping into its full value requires more than a basic understanding; teams must master practical compliance and leverage digital tools to meet every contractual requirement.
Elecosoft’s targeted Asta Powerproject training fills this critical gap. By combining instructional expertise with cutting-edge software, these workshops ensure civil engineering teams can apply relevant principles confidently and efficiently in real projects. This approach paves the way for better project outcomes, fewer disputes, and a more resilient, forward-thinking construction industry.