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NEC4 Contracts: Commercial & Operational Essentials

This focused training session is designed to deepen your understanding of the NEC4 suite of contracts from both commercial and operational perspectives. Whether you engage with Engineering and Construction Contracts (ECC), Professional Service Contracts (PSC), or Term Service Contracts (TSC), this course provides practical guidance on contract selection, roles, clause interpretation, and risk allocation. Attendees will gain clarity on how NEC4 promotes collaboration, efficiency, and effective project delivery.

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Prices Vary

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1 Day

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8 People Maximum

Next Course:

Date: 28 July 2025

Location: Buckshaw Village

Who Should Attend?


This session is tailored for:

  • Project Managers working on NEC contracts

  • Commercial Managers, Planners, and Cost Consultants

  • Contract Administrators and Quantity Surveyors

  • Client and Employer Representatives

  • Site Managers and Engineers

  • Procurement and Legal Professionals supporting NEC-based projects

Pricing Information

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Aims & Objectives


  • Understand how to choose and apply the right NEC4 contract

  • Gain insight into core clauses and Compensation Event processes

  • Clarify the commercial impact of Main Options A to E

  • Improve collaboration through role clarity and communication structures

  • Identify and manage risks arising from Z Clauses and bespoke amendments

  • Be better equipped to manage time, cost, and quality within NEC4 frameworks

Course Content

Format:

Interactive presentation with practical case examples and discussion


Materials Provided: 

Slide deck, clause summary handout, contract type comparison chart


1. Introduction to NEC4 Contracts

  • What NEC4 is and why it's widely used

  • Core principles: collaboration, early warning, risk management

  • International and UK context


2. NEC4 Suite – Choosing the Right Contract

  • ECC – Engineering and Construction

  • PSC – Consultancy and Design Services

  • TSC – Maintenance and Ongoing Services

  • Matching contract type to procurement strategy and project needs


3. Contract Strategy and Scope Alignment

  • When to use ECC, PSC, or TSC

  • Strategic considerations: clarity of scope, risk allocation, and duration

  • Delivery models and operational implications


4. Understanding NEC4 Clause Structure

  • Overview of the core clauses (1–9)

  • Emphasis on Clause 6 – Compensation Events

  • How the clauses support disciplined project control (time, cost, quality)


5. Roles and Responsibilities Under NEC4

  • Key parties: Project Manager, Supervisor, Employer, Contractor/Service Provider

  • Distinctions in ECC, PSC, and TSC

  • Communication protocols and collaborative working


6. Main Payment Options (ECC Options A–E)

  • Overview of Options A–E:

    • A: Fixed Price

    • C/D: Target Cost (Shared Risk)

    • E: Cost Reimbursable

  • Matching Main Options to project complexity and risk appetite


7. PSC & TSC Options: Commercial Considerations

  • Applying Options A, C, and E in service contracts

  • Commercial control via KPIs, milestones, and performance measurement

  • Aligning consultant/service provider incentives


8. Z Clauses – Risks and Red Flags

  • What Z Clauses are and why they matter

  • Common issues: ambiguity, risk transfer, unintended consequences

  • Importance of early review and commercial/legal coordination


9. Summary of Key Takeaways

  • Practical NEC4 management tips

  • The importance of knowing your Main Option and role

  • Risk mitigation through Compensation Events and Z Clause awareness

Pricing Model

Full day on site training (6 hours excluding breaks)


£295.00 per person, minimum number of delegates is 6 for this course, the total cost is £1,770.00 (excluding VAT).


Additional delegates over the minimum required will be charged at £225.00 per person.


Additional costs may be incurred for travel and accommodation, please see terms and conditions applicable.

Course Content

Full Award Assessment

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ABS Training

1st Floor Revolution Park | Buckshaw Village | Chorley | Lancashire | PR7 7DW | United Kingdom

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