The addition of a partnering option to the NEC (now styled the ECC or Engineering and Construction Contract) is referred to as Option X12 and should only be used where multi-party partnering is desired. It is intended as a supplement to the contract entered into by each member of the project team, which may comprise employer, contractor, subcontractor, consultants and even suppliers. As such it is a 'bolt-on' not a free-standing contract, and will not work unless an NEC contract is used.
The ECC Partnering Agreement should have legal effect by acting as an addition to an existing contract. There is no duplication between the NEC conditions of the contracts entered into by members of the project team and those in the Partnering Agreement.
Schedule of partners
The parties to the agreement are all those who are intended to make up the project team. The point at which someone becomes a partner is when their own contract and the Partnering Agreement are signed. Partners can join the team at various times and those joining early may not know the full details of who will be joining later.
The following is required for everyone who signs up:
- name of partner;
- address and contact details;
- contribution and objective;
- joining and leaving dates;
- key performance indicator;
- target;
- measurement arrangement;
- amount of payment if the target is improved or achieved.
The use of the Partnering Agreement should result in a well-rounded and appropriate set of conditions of contract where a partnering arrangement comes into force
The partnering information specifies the client's objective, how the partners will work together, and what is to be achieved. A partner who is in breach of the agreement may be liable to the employer as well as another partner (or partners).
Care should be taken to avoid any conflict or inconsistency with the contracts between consultants or contractor and employer.
In addition to any bonus arrangements in a partner's own contract, the amount stated in the Schedule of Partners will be paid if a key performance indicator is achieved or improved.
Working arrangements
To meet the ethos of partnering with its concepts of trust, fairness, and dedication to common goals and understanding each party's expectations and values, the Partnering Agreement sets out a framework for working arrangements.
Source
Electrical and Mechanical Contractor
Postscript
Roger Knowles is chairman of construction contract consultants James R Knowles.