Pioneering the NEC system of documents

This paper explains why Eskom, a large electrical utility, has decided to adopt the New Engineering Contract system of documents and assist the owners of the NEC with its further development. It describes the effect this decision is having on Eskom's ‘culture’, the benefits the introduction is providing through the opportunity to retrain all its contract practitioners and the response from South African industry. Types of project to which NEC has been applied are discussed. Examples of problems and successes with the introduction phase are given, with particular reference to the settlement of disputes. The paper concludes with a reference to the South African Government's Procurement Reform Initiative which is seeking standardization of conditions of contract used throughout the Republic.