NEC4 Expertise: Driving £3.2 Million Savings on LTC Investigation

The Lower Thames Crossing, a nationally significant highway scheme, required a comprehensive ground investigation phase to inform design and mitigate geotechnical risks. Waleed Associates Consulting was engaged to play a pivotal role, going beyond traditional project management to strategically optimise the NEC4 Engineering and Construction Contract (ECC) Option C: Target Contract with Price List strategy. Our expertise was instrumental in proactively preventing potential claims and ensuring efficient, effective delivery of this critical phase of the landmark infrastructure project. We focused on developing a robust NEC4 Option C framework to maximise collaboration, incentivise efficiency, and ensure a fair allocation of risk for this complex ground investigation.

Strategic NEC Contract Implementation - Option C Optimisation:

While NEC3 Option B (Priced Contract with Bill of Quantities) is often considered for ground investigation, Waleed Associates Consulting strategically advocated for NEC4 Option C for the Lower Thames Crossing due to its inherent advantages in managing complexity and uncertainty. We expertly tailored the NEC4 Option C framework through these key mechanisms:

• Strategic Rationale for NEC4 Option C Selection: We advised the client on the compelling benefits of NEC4 Option C over Option B for this project, emphasizing:

  • Enhanced Collaboration: Option C's collaborative nature, fostered through mechanisms like Early Warnings and Partnering options, was crucial for joint problem-solving and managing unforeseen ground conditions inherent in a large-scale ground investigation.

  • Improved Risk Management through Target Cost: The target cost mechanism in Option C incentivised both Employer and Contractor to proactively identify and mitigate risks early on, sharing both pain and gain. This was vital for managing the geotechnical uncertainties of the project.

  • Greater Flexibility for Scope Evolution: Option C's pain/gain share mechanism provided essential flexibility to manage scope changes and adapt to evolving geotechnical data uncovered during the investigation, a key advantage over the fixed-price nature of Option B.

  • Stronger Cost Control through Defined Cost & Pain/Gain Share: While Option B relies on a pre-agreed Bill of Quantities, Option C, coupled with our rigorous cost management processes and understanding of Defined Cost, offered enhanced cost certainty and control throughout the investigation phase.

• Proactive Claims Prevention through NEC Contract Administration (Clause 60-66): We implemented meticulous NEC contract administration (Clauses 60-66), focusing on proactive management of Compensation Events. By rigorously assessing and fairly valuing any necessary changes, we proactively prevented potential claims from escalating, saving the client significant time and resources.

• Robust Scope Development & Works Information (Clause 20.1 & Core Clauses): We played a key role in developing a comprehensive and well-defined scope of works within the Works Information (Clause 20.1), ensuring it was clear, unambiguous, and aligned with project objectives. This robust scope definition, underpinned by NEC Core Clause principles of clarity and cooperation, minimised potential for scope disputes and variations later in the project.

• Optimised Drilling Methodologies for Value & Sustainability (Value Engineering under NEC): Leveraging the NEC emphasis on value engineering, we introduced innovative and efficient drilling methodologies that not only delivered better value for money but also reduced the environmental impact of the ground investigation, aligning with sustainability goals.

• Strategic Use of Secondary Options: To further refine the NEC4 ECC Option C for the Lower Thames Crossing Ground Investigation, we advised on the strategic incorporation of Secondary Option X7 (Delay Damages) to incentivise timely completion and protect the project programme, and Option X12 (Multiparty Collaboration) to enhance cooperation amongst the diverse project stakeholders involved in the complex investigation.

Quantified Value Delivered Through NEC Option C Expertise:

• £3.2 Million Cost Reduction through Strategic NEC Contract Management & Value Engineering: Through the combination of strategic NEC4 Option C contract management and proactive value engineering initiatives (aligned with NEC principles of seeking efficiency), we reduced the total ground investigation project cost from £15.3 million to £12.1 million, delivering £3.2 million in significant savings for the client.

• 20% Increase in Project Efficiency (NEC-Driven Process Optimisation): By implementing efficient project management processes within the NEC framework and fostering a collaborative team environment, we achieved a 20% increase in overall project efficiency, accelerating data delivery and informing subsequent design phases more rapidly.

• 20% Reduction in Long-Term Maintenance Costs through Design Optimisation (NEC Value Engineering): Our value engineering efforts, encouraged by the collaborative and value-focused nature of NEC Option C, extended to design optimisation. By optimising drainage and embankment designs based on the ground investigation data, we achieved a projected 20% reduction in long-term maintenance costs for the highway infrastructure.

• Effective Team Leadership & On-Time, On-Budget Delivery (NEC Project Management Framework): Leveraging the clear roles and responsibilities defined within the NEC project management framework, we successfully directed a 30+ member team, ensuring the complex ground investigation was delivered on time and within budget, providing critical data for the wider Lower Thames Crossing project.

• Proactive Claims Prevention & Dispute Avoidance (NEC Proactive Management): Through proactive risk management, meticulous NEC contract administration, and a focus on early communication and collaboration, we demonstrably prevented potential claims and fostered a dispute-avoidance culture throughout the ground investigation phase, saving significant management time and potential legal costs.

Client Satisfaction:

Our strategic application of NEC4 Option C, proactive contract management, and focus on value engineering ensured the Lower Thames Crossing ground investigation was not only delivered successfully but also provided exceptional value for money, setting a strong foundation for this nationally significant infrastructure project.

Get in Touch:

Planning a major infrastructure project with complex ground conditions or evolving scopes? Contact Waleed Associates Consulting. Our expertise in optimising NEC contract strategies, managing complex ground investigations, and delivering projects efficiently can help you achieve your project goals and maximise value. Let's discuss your project today!