New guidance on integrating FAC-1 with NEC4 unveiled as industry leaders gather to discuss future of the industry.
- NEC’s annual conference saw construction leaders from across the globe gather to discuss the future of the sector
- New FAC-1 guidance announced and is available from NEC website on 28th June
- NEC has released Y Clause for Singapore NEC4 contracts to enhance regional compatibility
New guidance on how to implement NEC4 under the Framework Alliance Contract (FAC-1) was unveiled at the NEC’s annual conference on Friday 21 June.
The contract has been recommended by the UK Government and can be used with any form of project contract or consultancy agreement. However, this year’s NEC annual conference marked the first time specific guidance on how to optimise the integration of FAC-1 and NEC4 has been shared.
Peter Higgins, Chair, NEC Contract Board said: “I’m pleased to be able to share new guidance for the industry on implementing NEC4 with the FAC-1 framework. Using these forms together can help optimise project outcomes globally, encouraging strategic collaboration between project stakeholders to foster best practice and deliver efficient and effective project management.
“There are already many examples of how FAC-1 And NEC4 have been integrated to enhance project delivery and I’m confident that this new guidance can help empower an increasing number of people across the industry to realise their combined potential in future.”
The published guidance on how to implement NEC4 under FAC-1 will be available on the NEC website from Friday 28 June.
Key conference highlights
NEC continues international growth
Earlier this year, the Hong Kong government awarded a HK$61.1 billion (£6.2 billion) NEC4 Design Build and Operate contract for a landfill site extension that will last nearly 60 years, making it the largest and longest single NEC contract to date.
In addition, NEC has released Y Clauses for its NEC4 contracts in Singapore to enhance regional compatibility, with the Singapore Building and Construction Authority (BCA) projecting a steady increase in construction demand until 2028 which is estimated to reach $38 billion.
Rekha Thawrani OBE, global director of NEC contracts said, “We have been engaging with the BCA in Singapore to increase understanding of the benefits of NEC and we look forward to continuing our partnership as their collaborative contracting journey progresses.”
AI will shape construction’s future skills demands
The conference highlighted how fears around AI taking people’s jobs are misplaced and instead, AI will create new opportunities for those who can harness it as a tool to support their work. Upskilling to become AI literate is a key priority for those working in the construction sector.
Ian Heaphy, board member, NEC Contract Board, said “As an emerging technology, there are clearly important questions we need to ask about how AI will affect the future of the construction industry and what it means for those of us working in the sector. However, rather than a dystopian vision of AI replacing many skilled jobs, the reality is that AI will become a tool that is increasingly used to support skilled practitioners in their roles.
“Increasingly, leading practitioners will be able to effectively harness AI as a tool to help them elevate their work and productivity. Therefore, it is incumbent upon us to take a positive and forward-thinking approach to upskilling across the industry, so that we can fully realise AI’s potential.”
