The webinar began with the esteemed speakers being introduced by SCL(S) Immediate Past Chair, Ms. Moon Kua.  The subject matter was particularly poignant following the Building and Construction Authority’s announcement on 29 April 2024 that an NEC4 contract for construction and engineering projects in Singapore was being launched, complete with a set of NEC4 Y (SG) clauses to align with the laws of Singapore.

First up was Mr. John Battersby, a self-proclaimed “claimsman”, and Group Director of BKAsiaPacific Limited in Hong Kong.  Mr. Battersby began with a brief history of the use of NEC contracts for Hong Kong based projects, and then moved on to the benefits he perceived NEC had over its more traditional predecessors.  Of particular note was his experience that projects administered by NEC contracts ran into significantly fewer disputes, which are well known to be costly and time consuming.

Mr. Battersby then provided his views on the challenges faced by the construction industry in Hong Kong in adapting to the widespread usage of NEC contracts.  He elaborated that the collaborative nature of NEC contracts had required a change in attitudes and behaviours in those accustomed to more traditional forms of construction contracts.  He also referenced the tendency for contracting parties to overly amend NEC contracts to try and transfer risk down the supply chain, and that this approach often went against the NEC’s spirit of mutual trust and cooperation.

In concluding his section of the webinar, Mr. Battersby emphasised the need for effective training to be given to parties embarking on NEC contracts, so that the benefits can be better understood by all at the outset.

The webinar then handed over to Mr. Shy Jackson, Partner at Bryan Cave Leighton Paisner LLP.  Mr. Jackson shared his insights on the way that NEC contracts deal with claim assessments, with views given on retrospective and prospective assessments.  He also discussed how NEC4 had adapted to attempt to address the issue of claims being pushed to the end of the project to be determined.

Mr. Jackson then moved onto the subject of “good faith” clauses in construction contracts, and how these were viewed under English Law.  He provided attendees with some poignant examples of where good faith was relied upon by contracting parties in disputes, and how these had been interpreted by the Courts.  In that context, Mr. Jackson looked at the NEC’s provisions for the parties to act in good faith, and pondered the legal and contractual implications of such provisions being breached.

Mr. Jackson concluded his section of the webinar in agreement with Mr. Battersby that effective training for contracting parties to NEC contracts is key for their successful operation.  His view is that collaboration in contracting does not mean that the contract should be ignored and that issues would not arise during the course of the project, but it is how those issues are dealt with and resolved most effectively that is most important.

The webinar ended with the esteemed speakers fielding some thought-provoking questions from attendees, with the session expertly moderated by Ms. Kua.

Click HERE to view more webinar photos. 

Contributed by:
Chris Rudland - Senior Commercial Manager, Leighton Asia (Singapore)