Global applications

NEC3, as it is known since the latest revisions published in 2005, was written specifically for easy interpretation and translation, avoiding the usual legalese and phrasing terms in a manner that would allow for easy translation in future and easy interpretation for non-native English speakers; there are also no cross references in the documents.

Despite the welcoming reaction from the construction industry, lawyers were understandably apprehensive when the contract was first introduced.

“Stereotypically, lawyers do not like the way in which the NEC is drafted, because it is drafted in a “non-legal” manner, however it does provide clarity and simplicity, which is very different from other forms of contract,” explains Taylor Wessing associate Sarah Mather, who recalls the contract wasn’t immediately accepted in the UK.

Having experienced some of the Wembley Stadium disputes first hand, Mather says the early warning mechanism and promotion of collaborative working form NEC’s primary benefits, along with the prioritisation of practicality and management.

“It is widely acknowledged that some developers in the UAE have adopted a very rigid attitude to disputes. For instance, some decisions have been taken to fight a dispute and to refuse settlement, even if more legal costs are incurred by the developer in the long-run,” Mather continues.

“If the NEC forms of contract were adopted in the UAE and elsewhere in the Middle East, the developers who have previously adopted such attitudes will have to adopt a new collaborative approach in order for the contract to work as it should,” she adds.

Despite this, and the regional prevalence of FIDIC, Mather says there is evidence of changing attitudes with NEC gaining international publicity through conferences and forums, such as the Construction Law conference to be held in Hong Kong next month.