A comparison of the clarity of traditional construction contracts and of the New Engineering Contract

Abstract

This paper discusses clarity and style of drafting in construction contracts based on research carried out by the Project and Construction Management Group at the University of Birmingham into the efficacy of the New Engineering Contract. One of the three principle objectives of the NEC was the achievement of greater clarity. The first section of the paper asks whether existing conditions of contract achieve clarity, deduces that they do not and investigates why not. The second section reviews the original aims of the authors' of the New Engineering Contract (NEC), before presenting the findings of research to date on whether the contract fulfils both the needs of the construction industry and the self-stated aims of the authors of the NEC. It then briefly considers some general legal criticisms of it and the changes made to the second edition, the Engineering and Construction Contract (ECC). The paper then outlines the benefits of clarity to effective project management and concludes that while ECC is not perfect, it is a significant improvement on other forms of contract in terms of clarity.