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New NEC Option X29 – Climate Change

Andrew Wooldridge-Irving, Associate Director, GVE


Background

In April 2022, NEC released a consultative version of a new X Option X29 ‘Reducing the impact of the works on climate change’. Responses were invited from industry on the new Option with a deadline date of 13th May 2022 to submit comments and feedback.


The consultative version was written specifically for the ECC form of contract although the intention was that relevant versions would be developed for each of the main and subcontracts in the NEC4 suite.


New Option X29

The formally published version was released on 26th July 2022 and includes a version of Option X29 for the following forms of NEC contract:


- Engineering and Construction Contract (ECC),

- Engineering and Construction Subcontract (ECS),

- Professional Service Contract (PSC),

- Professional Service Subcontract (PSS),

- Term Service Contract (TSC),

- Term Service Subcontract (TSS),

- Facilities Management Contract (FMC),

- Facilities Management Subcontract (FMS),

- Supply Contract (SC),

- Design Build and Operate Contract (DBOC),

- Alliance Contract (ALC).


Each form includes corresponding information for Contract Data part 1 and part 2, except for the ALC form (Contract Data part 1 only) and is further supplemented with guidance notes.


Differences between the consultative and formally published version

The obvious initial difference is the change in title from, ‘Reducing the impact of the works on climate change’ to simply ‘Climate Change’.


The differences between the consultative version and the new ECC published version are as follows:

  • Climate Change Execution Plan is now the Climate Change Plan,

  • A submitted Climate Change Plan is not denoted in capitals, recognising the ‘proposed’ status,

  • The ‘reminder’ procedure, following submission of a climate change plan, has been removed,

  • A new requirement is introduced which is for the Climate Change Plan to show how the Contractor plans to meet the Climate Change Requirements,

  • There is no longer a requirement for ‘consultation’ prior to submission of a quotation in relation to a Contractor proposal,

  • A Contractor proposal includes the effect of climate change on any demolition works,

  • The requirement wording relating to ‘disclosure’ has been revised,

  • Performance measurement reporting continues until Completion of the whole of the works, instead of the Completion Date,

  • Excluded matters, which links with Option X18, is now titled Limitation of liability, with the sub-clause wording revised.

Variances between the NEC forms of contract

Notwithstanding the different parties and named roles, the published X29 option for the other forms of NEC contract compare to the ECC version as follows:

  • ECS – As ECC,

  • PSC – Shortened X29.11 proposal procedure, limitation of liability ‘excluded matters’ stated at sub-clause 87 and not within Option X18,

  • PSS – Shortened X29.11 proposal procedure, limitation of liability ‘excluded matters’ stated at sub-clause 87 and not within Option X18,

  • TSC – No acceleration consideration required, compensation event assessment does not include ‘time matters’,

  • TSS - No acceleration consideration required, compensation event assessment does not include ‘time matters’,

  • FMC – Performance Table already included in the contract so provisions which relate to this are not included, X18 liability already includes reference to the Performance Table,

  • FMS – Performance Table already included in the contract so provisions which relate to this are not included, X18 liability already includes reference to the Performance Table,

  • SC – As ECC,

  • DBOC - Performance Table already included in the contract so provisions which relate to this are not included, X18 liability already includes reference to the Performance Table,

  • ALC - Performance Table already included in the contract so provisions which relate to this are not included, the provisions also recognise the structure and nature of the contractual relationships under an Alliance form of contract.


For further information on NEC secondary options please see our webinar presentations on X1-X29 which are FREE to download. Our 2021-2022 webinar series was presented and produced by Andrew Wooldridge-Irving, our NEC expert practitioner.


We provide a complete suite of training for the correct administration on x clauses in NEC3 and NEC4. Our bespoke training is tailored to the specific needs of your team and projects. For further enquiries about our NEC training including half-day, one-day or two-day workshops please email: info@gvecs.co.uk.



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