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NEC4 Contract Software

NEC4 software has to apply NEC4's own rules, not just show NEC3 screens with "Client" in place of "Employer". The changes that catch systems out are the new time limits around the early warning register, deemed acceptance of a programme, and the renumbered clauses for implementing compensation events.

This table sets out what to check on the NEC4 Engineering and Construction Contract (ECC). The NEC contract management software guide covers the wider buying decision, and NEC3 vs NEC4 explains the contract changes in full.

Where NEC4 differs, and what that means for software

TopicNEC4 ECCNEC3 ECCCheck that the system...
WordsClient, ScopeEmployer, Works Informationuses the right word on the right contract
Early warningsClause 15; Early Warning Register; early warning meetingsClause 16; Risk Register; risk reduction meetingsshows the correct names and clause numbers
First register and meeting1 week and 2 weeks after the starting date (15.2)No fixed periodtracks these from day one
Revised registerWithin 1 week of the meeting (15.4)No fixed period (16.4)shows whether it is still waiting
Programme not answeredTreated as accepted after a failure notice and a further week (31.3)No such ruleoffers this on NEC4 only, and moves the Accepted Programme when it applies
Instruction to quote61.261.1cites the right number on the letter
Proposed instructionsClause 6561.2, with replies under 62.3follows the NEC4 route, with its date set by the Project Manager
Compensation event list60.1(1) to 60.1(21)60.1(1) to 60.1(19)can offer (20) and (21), which NEC3 doesn't have
ImplementationClause 66Clause 65cites the right number
DefectsSearch and notify at 43.1 and 43.2; correct, accept and uncorrected at 44, 45 and 4642.1 and 42.2; 43, 44 and 45doesn't carry NEC3 numbers on to NEC4 letters
Final assessmentClause 53, after the Defects CertificateNonesays how it handles this

The core numbers for programme (31, 32), payment (50, 51) and compensation events (60 to 64) are mostly the same in both. So a system built for NEC3 can look fine on a quick view, and only slip on the rows above. See also NEC4 programme changes and NEC4 early warning changes.

What Contract Status does

Each contract in Contract Status has its own NEC version, and that sets the words, clause numbers and rules used on it. An NEC4 contract has an Early Warning Register and early warning meetings; an NEC3 contract in the same account has a Risk Register and risk reduction meetings.

  • Clause library by version. Clause numbers on records and letters come from your company's library for that contract's NEC version, so your changed clauses show on letters. Where the library has no clause, no number is shown.
  • Deemed acceptance of a programme. When the reply is overdue, the Contractor side can give notice that the reply is late, and a week later either side can record the deemed acceptance.
  • Proposed instructions. These have their own register, separate from compensation events.
  • Revised register. It is issued from the register page, and until it is, it waits on the Client side's Action List.
  • Other NEC4 forms. The NEC4 Professional Service Short Contract is numbered differently and lacks some ECC rules. The late-reply option isn't offered for a programme on it, and for other replies it is offered only where your library has the clause.

Two tests on any NEC4 system

Letter test. Generate the notice for a compensation event raised by the Project Manager on an NEC4 contract, and read the clause numbers on it. If 61.1 appears for the instruction to quote, or 65 for implementation, it is running NEC3 logic with new labels.

Programme test. Create a fictional contract, submit a programme, and let the two weeks pass. On NEC4, there should be a route from the failure notice to treating it as accepted, after which the Accepted Programme changes. Repeat on an NEC3 contract: the route should be absent, while the late reply remains a compensation event under 60.1(6).

Many contracts amend NEC4 with Z clauses. If yours changes a period or a clause, the software has to carry that change. Otherwise the letters will quote the standard rule rather than the one you signed.

If you are moving contracts across

You won't usually change an existing NEC3 contract to NEC4 mid-way, so most organisations run both for some time. Your team then needs to see at a glance which edition applies, and the system mustn't apply one set of rules to all contracts. The guide to moving from NEC3 to NEC4 covers the practical side. To go through your own NEC4 amendments on Contract Status, book a call.

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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Test your NEC knowledge, use the free NEC tools or download free NEC templates.

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.