New Engineering Contract

Responding to the construction industry’s ongoing need for collaboration, avoidance of disputes, and proactive actions to enhance project performance and encourage innovation, the collaborative contracting of New Engineering Contract (NEC) has been implemented as the predominant mode of procurement for public works projects in Hong Kong. This marks a significant shift from an adversarial approach to a collaborative one across the industry for project procurement and construction.

For 15 years, NEC has been successfully implemented in over 600 public works projects of various types and sizes, with a cumulative value of over HK$400 billion.  Additionally, private organizations such as the Mass Transit Railway and the Airport Authority, have also delivered a substantial number of successful projects.  The collaborative culture fostered by NEC has led to substantial improvement in project outcomes, including greater certainty in planning and financial control, tangible savings in project time and cost, and enhancements in safety and quality. Contractual disputes have been drastically reduced.  The outstanding performance of Hong Kong projects has been recognized in various categories of the international NEC Awards, year after year.

In 2023, the Development Bureau launched the Hong Kong Edition of NEC, facilitating project procedures tailored for local practices and legislative requirements.  More significantly, the collaborative culture that has been nurtured and well-practised across the whole industry serves as a strong foundation for all industry stakeholders in our quest for continuing innovation and improvement, empowering us to shape a future-ready and sustainable city.