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The Benefits of NEC Contract Management Software

The benefits of NEC contract management software are practical and differ by role: fewer dates carried in people's heads, less time spent rebuilding the current position, and a record that can be found later. None of them amounts to better commercial judgement, and for some teams they won't be worth the change.

So this page takes each role in turn and gives the benefit alongside its limit. It belongs with the NEC contract management software guide. If you want the argument from the contract's mechanics first, see why use NEC contract management software.

Benefit and limit, by role

Project Manager

Benefit: replies falling due are in one list, so the two-week reply to a quotation (62.3) and the two-week reply to a programme (31.3) don't depend on someone spotting an e-mail. Silence has contract effects for this role more than any other.

Limit: a reminder doesn't produce a good reply. A rushed answer given on time can do as much damage as a late one, particularly where acceptance is withheld for a reason the contract doesn't allow (60.1(9)).

Contractor's commercial team

Benefit: the eight weeks in 61.3 can be measured from a recorded awareness date, and open events can be seen by stage, from notified through to implemented. It becomes easier to see which money is agreed and which is still only hoped for.

Limit: the date is only as good as what the site team reports. If nobody tells the surveyor, the clock is running and the system doesn't know.

Quantity surveyor

Benefit: each quotation sits with its event and its build-up, and the application and the certificate sit together. That cuts down the hunting that comes before any useful commercial work.

Limit: it doesn't replace your cost ledger or your valuation. Defined Cost records under clause 52 still have to exist and still have to be right.

Planner

Benefit: the current Accepted Programme is obvious. That matters because the delay from a compensation event is measured against it. The next revision due under 32.2 can also be seen.

Limit: a contract system tracks acceptance, not logic. It won't tell you that your float has gone or your sequence doesn't work. That needs a planner and a planning tool.

Site team

Benefit: a simple way to raise an early warning at the point someone notices the problem, rather than waiting for the next meeting. Under 15.1 the duty arises on becoming aware.

Limit: this is the group most likely to see the system as somebody else's paperwork. If it takes longer than a phone call, expect a phone call.

Client and senior management

Benefit: sight of the same records and dates as the delivery team, instead of a summary prepared for the occasion. Quotations waiting for an answer can be seen before they become treated acceptances.

Limit: visibility doesn't transfer authority. The Project Manager still acts under the contract, and a Client who starts instructing directly because they can now see everything creates a new problem.

What's left out of most lists of benefits

A few things are often promised that we wouldn't count on.

Often claimedA fairer way to put it
"It removes admin"It removes some, such as working out dates and rebuilding reports, and adds some, such as entering off-system events. Count both.
"It prevents disputes"Parties will still disagree. Good records narrow the argument and bring it forward. See how good records reduce disputes.
"It makes you compliant"It shows you what you did and when. Whether that met your contract is still a question about your contract.
"It gives you control of the budget"It shows you the position. Control comes from early warning meetings and decisions.
"You won't need NEC training"You still will. A system can show a date, but it can't explain why the date matters to someone who has never read clause 61. See what to learn about NEC4.

A benefit people notice later: other people's work

The most useful effect often appears when something changes. The surveyor who kept the tracker goes on holiday. A contract changes hands. A Client asks in month fourteen why a Key Date moved. On a job run from one person's notes, each of those is a small crisis. On a job with a shared record, someone else can open the event and read it. There is more on this in keeping NEC knowledge when people move on.

In Contract Status, for example, a record's history keeps each step, and the Completion Date timeline shows each change with the compensation event behind it, so that month-fourteen question has somewhere to start.

Who is unlikely to gain much

  • A team on one small contract with few changes and one careful owner, where a good spreadsheet already does the job.
  • A team that won't enter records. The system would then be an extra place for things to be out of date.
  • A team whose real problem is not knowing the contract. Start with managing NEC contracts and with training.
  • A team using a contract's specified system already. Your choice may be limited by what the Scope names, so check first.

See how this works in practice

Click through Contract Status with sample contracts: raise the notice, reply to it, and watch both sides of one record.

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This guide is general information in our own words, not legal advice. Your contract and its Contract Data always govern. NEC, NEC3 and NEC4 are trade marks of Thomas Telford Ltd; Contract Status is not affiliated with or endorsed by NEC.