NEC contracts for design–build–operate contracts

The NEC Engineering and Construction Contract (ECC) is a popular choice for construction and design-and-build contracts in the UK and South Africa. They are also increasingly by being used elsewhere in the world, for example in New Zealand and in Hong Kong. The NEC family of contracts is specifically designed for international use. The NEC Term Service Contract (TSC) is also increasingly being used for contracts to provide a service including, often, the operation and maintenance of an asset. Some clients are increasingly looking to appoint a contractor to design, build and operate an asset and so take a real interest in the operability and operating cost of the asset. This paper looks at key issues specific to design, build and operate contracts and explains how the NEC ECC and NEC TSC could be combined to form the basis of a design, build and operate contract. It is true that changes would be required, but with an NEC base to the contract, all parties would have the benefit of starting from what have become industry standard forms of contract, namely forms that are designed for clarity, flexibility and, most importantly, as a stimulus to good management.