In NEC vs ICC, the main contrast is between newer procedure-led management and a traditional measure-and-value approach. The Infrastructure Conditions of Contract (ICC) carry forward the old ICE Conditions, with an Engineer administering the contract, while NEC gives a Project Manager and Contractor a shared set of procedures and time limits. Both are used for UK civil engineering, although NEC is the more widely seen on major public infrastructure.
This is a general comparison, and ICC clause numbers are not cited. Check the version you are using. For the broader picture, see the guide to NEC and other contracts.
Where ICC came from
For decades, the ICE Conditions of Contract were a standard form for UK civil engineering. The Institution of Civil Engineers also owns NEC, and it withdrew its sponsorship of the ICE Conditions around 2011. The Association for Consultancy and Engineering and the Civil Engineering Contractors Association then published the ICC suite, based on the earlier forms.
The result is a family with versions for measurement, design and construct, minor works, term work and ground investigation, among others. Older ICE-based contracts can still be found on legacy work, so don't assume every job with an "Engineer" uses the same conditions.
Side by side
| Topic | NEC4 ECC | ICC (general) |
|---|---|---|
| Administrator | Project Manager, acting for the Client, and a Supervisor for quality | The Engineer, who traditionally has a central decision-making role, often with an on-site representative |
| Pricing basis | Chosen from main Options A to F, including an Activity Schedule or a Bill of Quantities | The measurement version remeasures the work against a bill; other versions apply to other routes |
| Change | A compensation event assessed on Defined Cost plus the Fee | Typically valued using bill rates where they apply |
| Unforeseen ground | Physical conditions, 60.1(12) | A long-standing feature of ICE-derived forms, with its own notice and claim process |
| Programme | Accepted Programme with detailed required content, regularly revised | A programme is required, but it generally plays a less central role in assessing entitlement |
| Risk management | Early warnings, Early Warning Register and meetings | Less formal in the standard text, and handled through normal site management |
| Time bar | Eight weeks for Contractor notifications, with exceptions (61.3) | Notice requirements apply; check their exact effect in your version |
How the Bill of Quantities differs
This is the point that catches experienced civil engineers. Under an ICC measurement contract, the rates usually do much of the work: actual quantities are measured and paid at the bill rates, and variations are often valued on them too.
NEC Options B and D use a Bill of Quantities, but differently. A change in quantity alone is not usually a compensation event. It becomes one only in the circumstances set out in 60.4 and 60.5, and a compensation event is assessed on Defined Cost plus the Fee unless the Parties agree otherwise.
An illustrative example
On a fictional culvert job, bill quantities for excavation are 1,000 cubic metres at £20. The final measure is 1,300 cubic metres. The traditional approach pays for the extra 300 at £20 unless the rate needs revisiting, adding £6,000. Under NEC Option B, the extra is still paid through the bill rates, so the same £6,000 is included, but you would also test the numbers against the conditions in 60.4 and whether the extra quantity has delayed Completion under 60.5. If so, a compensation event assessment is needed. The figures are the easy part. The procedure is what differs.
Practical points when moving from ICC to NEC
- Stop thinking of the Project Manager as the Engineer. The Project Manager acts for the Client, and has the time limits to meet too. See the Project Manager guide.
- Learn the difference between the people on site. Quality issues go through the Supervisor, whereas time, money and most instructions go through the Project Manager.
- Keep Defined Cost records. A rates mindset alone won't support a compensation event assessment.
- Notify in time. Put the 61.3 period into your site routine.
- Plan for more programme work. A planner who only updates a chart monthly will struggle with the content NEC expects.
When ICC might still be chosen
A client with experienced Engineers, a well-defined measured job and a supply chain that knows the form may be comfortable with ICC. NEC is usually the more likely choice where a client wants active risk management, target cost arrangements or alignment with other NEC contracts on a programme of work, and some public clients prefer it as a matter of policy. See NEC and public sector procurement.
Related guides
- NEC vs Other Construction Contracts
- NEC vs GC/Works
- NEC PSC vs Other Consultancy Appointments
- Advantages of NEC Contracts
- JCT Terms in NEC Language
- NEC vs FIDIC
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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.