Government and Engineering and Construction Contract - Essay Example

The second edition of the New Engineering Contract was published in 1995 and applied to a wider range within the engineering and construction field. It was in 2005 that the third edition, NEC3, was developed. NEC3 is currently used and exhibits various changes. It has been used in ratifying nuclear power station projects, the 2012 Olympic Stadium, and the Halley 6 Research Station in Antarctica. It is also been used in countries around the world like South Africa. Its use implies that it suits the requirements of the modern construction and engineering industry. However, opponents beg to differ (Gould, 2007).

Review of known Facts

The Government Commerce in the United Kingdom has validated NEC3 for utilization in the construction projects that are funded by the public. NEC3 also meets the requirements of the Achieving Excellence in Construction (Rowlinson, 2011). In the validation by the office of the Government Commerce, it is noted that NEC3 satisfies the principles set out by AEC, whose aim is to boost performance in the construction industry. It is also noted NEC3 is an up-to-date group of contracts that enhance the enactment of the right principles in construction projects. NEC3 is made up of three main elements. These key elements are risk management, the settings of the contract, and the management of the project. Thus, under the three components, NEC3 looks at the type of regulations, the compensation, what and when of the project, and identifies people in charge of the project like the supervisor and the contractor (Construction Industry Development Board, 2005).

Evaluation

In spite of the opposition from different sectors, an evaluation of the facts surrounding NEC3 can determine if it suits the requirements of the modern construction industry. NEC3 is composed of a group of two clauses, optional and key. Just to name but a few, the key clauses include time, general, payment, title, and compensation; while the optional ones include options A to F, which is the management contract.  The beneficial aspects associated with NEC3 include fruitful approval by contractors and customers. It is not rigid in terms of the designs; hence, permitting any form of association between the contractors and the employers. It is characterized by brevity and simplicity in its language that can be translated. It offers a range of choices that can be used to pay. They include a one-off payment, cost reimbursable, and target cost. Moreover, it keeps up with current payment trends that are founded on the progress of the project. Decreased number of disputes that enhance the contractual association and the efficacy of the construction projects (Dickson, 2013). It is a contract that encourages the adoption of the necessary changes to ensure proactive decision-making.

Conclusion

NEC3 is an up-to-date contract that provides the necessary mechanisms for the continuous improvement of construction projects. Its core and optional values characterize it while the benefits it offers make it a suitable option for meeting the needs of the present construction industry. Hence, as an individual, I deem it appropriate to adopt the NEC3 for all public and private construction projects. However, it could be good if the language used was reviewed in order to link NEC3 with existing laws associated with the construction industry.