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ODA to use NEC 3 to procure Olympic projects


THE OLYMPIC Delivery Authority (ODA) confirmed last week that it will be using the NEC 3 contract to procure Olympic Games construction projects. It also said that it would be seeking Olympic 'sitewide' insurance cover.

NEC 3 is designed to enable a partnering approach between client, contractors, subcontractors and designers, and has been used on successful projects such as Terminal 5 at Heathrow (see Analysis page 12).

ODA procurement chief Ray Payne told the NEC users group meeting in March that the contract would be used (NCE 30 March). This is now conrmed.

The ODA said that additional clauses will be incorporated to accommodate particular delivery characteristics, such as environmental, sustainability and other social requirements.

It also left the door open for other forms of contract to be used 'where the NEC may not be appropriate'. Retentions, incentives and who bears the risk will be worked out for each discrete project package, the ODA said.

The ODA also said it is seeking to take out insurance cover for the whole project, rather than individual suppliers taking out their own, making cover cheaper because of the volume of work. It also makes it easier for smaller rms to bid for Games work - a major ambition of the procurement strategy - as they will not be swamped by individual insurance costs.

The ODA hints that e-auctions may also be used to negotiate prices. 'Electronic procurement has demonstrated tangible savings at an operational level.

As a consequence, the ODA will use e-procurement systems as appropriate to openly advertise its contracting opportunities, negotiate prices in a transparent and auditable manner, ' it said.

But the ODA said it had no immediate plans for using reverse e-auctions.

To read the full strategy go to: www. nceplus. co. uk/images/ nce/kbank/ODA_Procurement_ Policy. pdf.

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