NEC4: Alliance Contracts

Alliancing is an exciting procurement direction for many clients, particularly when considering a highly complex project with an emerging scope. The potential benefit of using this contract includes a much deeper collaboration between all project partners, bound by common interests and reducing the potential for dispute.

This contract is different from the others within the NEC4 suite as it is a multi-party contract with an integrated risk and reward model. However, it largely follows the same principles of other NEC4 contracts, with familiar provisions, management processes and terminology.

The NEC4 Alliance Contract (ALC) marks the next step in NEC collaboration, creating a ‘true’ alliance arrangement in which the client and all key members of the supply chain, called ‘Partners’ in the ALC, are engaged under a single contract. All members of the alliance have an equal voice and share in the performance of the alliance as whole as opposed to their own individual performance.