This article is a guide to configuring your contract for NEC X22.
This guide contains the following:
- What is X22 Early Contractor Involvement?
- Why and When Should You Use X22?
- Driving Value Through X22 ECI
- How to Configure X22
In this article, we will explore the concept of X22 Early Contractor Involvement (ECI) and its significance in NEC contracts. We will focus on implementing the latest edition of the X22 ECI clauses published by Thomas Telford. Clients have the option to adapt this with Z clauses or draft their own version as well. NEC Contract provides a practice note which outlines the benefits, key success factors and other key considerations. We'll delve into the reasons for using X22, its implementation, and how it can drive value for both clients and contractors. Let's get started!
What is X22 Early Contractor Involvement?
X22 is an optional clause that enables Early Contractor Involvement (ECI) and is applicable to various NEC contracts, including NEC3 Engineering and Construction Contracts (Option C & E), NEC4 Engineering and Construction Contracts (Option C & E), and the NEC4 Alliance Contract, and other NEC works of construction contact, with some adaptation.
This clause introduces additional processes that allow contractors to engage collaboratively in project development, including design and planning of construction works, before progressing to the main construction stage. Surveys and advance construction works may also be carried out in the first stage of the contract to support de-risking or enabling the works.
Why and When Should You Use X22?
ECI is well-suited for all types of construction projects, especially those involving complex construction methodologies. Although, we recommend that less proficient Clients should consider appointing qualified consultants to support internal capability for the development of ECI provisions and managing them.
Driving Value Through X22 ECI
Clients seeking to drive value from their projects will find ECI offers the following benefits:
- Strong Focus on Client Objectives: X22 ECI aligns the delivery team with the client's objectives right from the start. It enhances value for money, achieves business case benefits, ensures improved safety and quality, promotes better environmental performance, accelerates project deliver, and provides more reliable budgets.
- Dedicated Construction Planning and Design Stage: The initial contract stage allows contractors ample time to plan and optimize the delivery of client objectives. This involves integrating design and construction planning to enhance buildability, identifying, avoiding, or managing construction risks, and thoroughly reviewing and testing proposed construction methodologies, programmes, and cost estimates before actual construction begins.
How to Configure X22
X22 introduces new process and two stages to the contract. Our contract management software simplifies and streamlines the management of these additional processes as follows:
- X22.2 requires the contractor to provide detailed forecasts. Our platform features a dedicated submission workflow which allows the Contractor to submit forecasts and Project Manager to accept or reject the forecast. Our platforms also support the submission of cost forecasts under clauses such as 20.4 in NEC4 ECC Option C (or equivalents), which don't require acceptance. This is done through a separate module that displays forecasts on a dashboard automatically. Initially, the X22.2 cost forecast will cover Stage One and will change to include Stage Two once a Stage Two proposal is accepted, so there is some overlap of these two forecasts at the start of an ECI project due to the drafting of NEC. Our platform caters for this and distinguishes between these two forecasts under the different clauses.
- X22.3 requires the contractor to submit detailed proposals during stage two. Our platform includes a dedicated submission module that enables the Project Manager to accept the design and planning proposals. The submission also incorporates the Contractor's forecast of the proposals' impact on the Project Cost and Accepted Programme. At the end of stage one, the Contractor submits proposals for stage two (which also includes a quote) to the Project Manager for acceptance, including;
- A revised programme
- Any revisions to Access Dates, Key Dates, and the Completion Date
- Total of the prices or any change to the total of the price
The final proposal for Stage Two is done through the Submission with Quote workflows as it changes the Total of the Prices. Our platform also supports initial submissions for elements of design, etc which don't impact the Total of the Prices as well.
- X22.5 necessitates the Project Manager to issue a notice to proceed to stage two under certain circumstances. This is supported through our Instruction workflow.
- X22.6 allows for budget changes agreed upon by the Project Manager and Contractor. Our platform facilitates the Submission workflow for such revisions. In case of disagreements, the Project Manager can notify their assessment of the revised budget via the notification workflow.
In conclusion, X22 Early Contractor Involvement provides numerous benefits that lead to more successful NEC projects, ranging from improved collaboration and planning to enhanced risk management and project efficiency. By embracing ECI, stakeholders can unlock the full potential of their projects and achieve better outcomes for all parties involved.