The Association for Consultancy and Engineering (ACE) and Civil Engineering Contractors Association (CECA) are launching of Infrastructure Conditions of Contract, a standard suite of forms of contract based on the ICE Conditions of Contract.
Building on the legacy of the ICE Conditions of Contract, the Infrastructure Conditions of Contract will continue to offer the same reassurance, clarity and reliability that clients and suppliers are used to.
“ACE and CECA are proud to continue to build on the value and security that the suite provides. I am sure that Infrastructure Conditions of Contract will be an essential part of infrastructure clients’ toolkits for efficient delivery,” said ACE chief executive Nelson Ogunshakin OBE.
CECA’s director of external affairs Alasdair Reisner added, “industry-standard terms and conditions are widely understood and accepted.”
“They are instrumental in delivering best value in what are often complex and challenging projects. They are part of the drive toward lower costs and better outcomes.”
The move follows ICE decision to withdraw its ICE Conditions of Contract (ICE CoC) today.
The withdrawal follows a decision made by ICE Council in 2009 to solely endorse the NEC3 Suite of Contracts and the consequent agreement in July 2010 to withdraw from ICE CoC after a 12 month period.
ICE’s part ownership of the contract has now been transferred to the ACE and the CECA and the contracts have been withdrawn from sale, 66 years after they were first published.
“ICE decision to withdraw support from the ICE CoCs was part of a strategic realignment of our offerings and a desire to promote what we see as a more collaborative approach to contract management which offers value for money to clients and the construction industry at large,” said ICE vice president Barry Clarke.
NEC3 was developed to enable projects to be delivered on time and within budget through the inclusion of project management principles to the contractual process.
As one of the few contracts that meets the Cabinet Office Efficiency and Reform Group (ERG)’s “Achieving Excellence in Construction” criteria, NEC3 offers a unique approach with a whole family of contracts that can be used for works, services and supply across the supply chain – from complex infrastructure projects such as the 2012 Olympics to much lower value, simple services.
The launch comes as the government identifies greater use of standard forms of contract as a means of eliminating waste from public sector construction. The Government Construction Strategy commits to move towards using only standard forms of contract with minimal amendment for all new central government procurement activity.