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Nec Retains Status Contract Choice For Nhs Framework

Tuesday, 14 September 2010

The Department of Health is using NEC3 as the procurement contract of choice in its new ProCure21+ framework.  


As of 1st October 2010, any NHS Trusts seeking to appoint a construction company for refurbishment or new build projects will be able source suitable contractors through the ProCure21+ framework (which has been designed to streamline and simplify the procurement process) and use NEC3 to procure the service.


The new framework replaces ProCure21 which mandated use of the NEC3's predecessor, NEC2. Although ProCure21 was voluntary, it has become the most popular procurement route for NHS capital schemes, delivering successful projects with a value of almost £2 billion. It is expected that the revised ProCure21+ framework will save the NHS more than £200m in procurement costs and enable hospitals to be upgraded more quickly.


Peter Sellars, Head of ProCure21+ comments: "ProCure21+ is designed to streamline the procurement process by cutting bureaucratic red tape and allowing NHS organisations to concentrate on delivering patient care and improving outcomes.


"The framework mandates use of NEC3 due to its focus on sound project management and established track record in promoting best practice which provides greater certainty and less risk to ensure quicker and more cost effective hospital construction and refurbishment."


Rekha Thawrani, General Manager from NEC, adds: "The key objective of NEC3 is to encourage the parties involved to work together to effectively allocate risks and create a working relationship which will ultimately provide value for money and a successful outcome. It is for these reasons that NEC3 has been selected for ProCure21+ and why we remain the only contract to be endorsed by the UK Office of Government Commerce for public sector procurement."


The six companies that have been approved for the new framework are: Balfour Beatty Group Limited, Healthcare Partnership Solutions Ltd, Integrated Health Projects, Interserve Project Services Limited, Kier Regional Ltd and Willmott Dixon Holdings Ltd.


Under the new framework, clients can select a partner and start work on projects in 3-6 weeks, saving the NHS at least six months in the procurement time.





Notes to editor

  • In 1985 the Institution of Civil Engineers decided to lead a fundamental review of alternative contract strategies for civil engineering design and construction with the objective of identifying the need for good practice. After much discussion and consultation, this review resulted in the publication in 1991 of a consultative edition, and in 1993 of the first edition of the New Engineering Contract (NEC). Since then, in response to industry demands, further standard forms of contract have been produced, using the same principles as were used in the NEC first edition.
  • NEC is a division of Thomas Telford Ltd, which is a wholly owned subsidiary of the Institution of Civil Engineers (ICE), the owner and developer of the NEC.
  • The NEC family of standard contracts all have the following characteristics:
  • o Stimulates good management of the relationship between the two parties to the contract and, hence, of the work included in the contract
  • o Can be used in a wide variety of commercial situations, for a wide variety of types of work and in any location
  • o Is a clear and simple document - using language and a structure which are straightforward and easily understood.


For more information visit http://www.neccontract.com/