In promoting a collaborative partnership in the delivery of public works projects, the Hong Kong Government has adopted the “New Engineering Contract” (NEC), which aims at improving construction efficiency and effectiveness in the use of public funds. Since its first publication in the UK in 1993, the NEC contract has become increasingly popular in the UK, Australia, South Africa, Hong Kong and New Zealand.
Following the success of its first NEC pilot project, the Fuk Man Road Nullah Improvement in Sai Kung in 2009 (completed 6 months earlier than scheduled with cost savings), the Government announced that it would continue to adopt NEC forms in all public works contracts for tenders gazetted or called after 2016 as far as possible and thus underpinned a new contractual landscape in the construction industry.
It was reported that the Government is currently running over 170 NEC works projects and 30 consultancy projects. In July 2019, the Government awarded the largest NEC target contract for the construction of the main tunnel section of the Central Kowloon Route (2.8km long dual 3-lane road tunnel between Yau Ma Tei and Ma Tau Kok) for HK$6.23 billion.
Recognising the significance of this form of contract, Construction Consultant, Stanley Lo, has recently completed the NEC4 Project Manager Accreditation course and examinations. Stanley has been awarded the title of “Accredited NEC4 Project Manager” and is eligible for inclusion on the Institution of Civil Engineers’ Register for Accredited NEC Professionals under the category of Engineering and Construction Contract (ECC).
Stanley’s qualification further equips our Construction practice to advise on NEC contracts.