NEC3 Engineering and Construction Contract Guidance Notes (ECC3 – GN)

NEC3 Engineering and Construction Contract Guidance Notes (ECC3 – GN)
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This guidance notes (commonly known as the Brown Book) explain the background to the Engineering and Construction Contract, the reasons for some of its provisions and provide guidance on how to use it. They cover usage of all the six A-F main Options. An introductory section explains NEC objectives, application and project organisation, followed by sections on contract strategy and preparing tender documents. The bulk of the book is then devoted to explanations of the clauses and schedule of cost components with worked examples of contract data forms provided.
The National Treasury Standard for Infrastructure Procurement and Delivery Management has, with the exception of the NEC3 Framework Contract (a head contract), endorsed the NEC3 family of contracts for use by organs of state in South Africa to serve their infrastructure needs.

The NEC3 family of contracts support a wide range of procurement strategies which can lead to improved project outcomes and in so doing realise value for money.


• Background
• Purpose of guidance notes
• Objectives
• Subcontracts
• Some other changes
• Application of the ECC
• The published documents
• Project organisation
• Choosing the strategy
• The main Options
• The dispute resolution procedure Options
• The secondary Options
• Choice of Options
• Preparing the tender documents  
• Inviting and preparing tenders
• Assessing tenders
• Creating the contract
Explanatory notes
• 1 General
• 2 The Contractor’s main responsibilities
• 3 Time
• 4 Testing and Defects
• 5 Payment
• 6 Compensation events
• 7 Title
• 8 Risks and insurance
• 9 Termination
• Dispute resolution Options W1 and W2
• Secondary Option clauses
• Schedule of Cost Components
Engineering and Construction Subcontract
• Appendix 1 Clause numbering system
• Appendix 2 Sample form of tender
• Appendix 3 Sample form of agreement
• Appendix 4 Model tender assessment sheet
• Appendix 5 Contract Data – worked example