Technical Documents > NEC Corner

The "New Engineering Contract" (NEC) is a new form of contract introduced for public works projects. Under NEC, all parties in the contract, including the project management office and the contractor, will need to follow the contract conditions under the NEC to manage the project in a partnering manner.  Through the implementation of contractual partnering, a high level of mutual trust and co-operation can be established among the parties involved, thus minimizing the number of contractual disputes and avoiding delay.

NEC characteristics

  • Team Spirit and goal alignment
  • Pain-gain share mechanism to enhance cost effectiveness
  • Reduces risk of cost and time overruns

The following DSD’s contracts are adopting NEC:

 
Contract No. Contract Title Status
(Contract Period)
[Awarded Contract Sum]
NEC Option
DC/2008/02 Improvement of Fuk Man Road Nullah in Sai Kung Completed
(Aug 2009 - May 2012)
[$49.8 million]
ECC Option C
DC/2012/01 Building and Civil Maintenace and Minor Works to
DSD Plants and Facilities (2012-2016)
Completed
(Dec 2012 - Nov 2016)
[$160 million]
TSC Option A
DC/2012/03 Happy Valley Underground Stormwater Storage
Scheme
Ongoing
(Sep 2012 - Nov 2017)
[$1,065.8 million]
ECC Option C
DC/2012/05 Sewerage at Yuen Long Kau Hui and Shap Pat Heung Completed
(Sep 2012 - Jan 2017)
[$145 million]
ECC Option D
DC/2012/07 Lam Tsuen Valley Sewerage - Village Sewerage,
Stage 2, Phase 1
Completed
(Oct 2012 - Jun 2016)
[$173 million]
ECC Option B
DC/2012/09 Pak Hok Lam Trunk Sewer and Sha Tau Kok Village
Sewerage
Completed
(Jun 2012 - Jan 2017)
[$187 million]
Framework
Contract + ECC Option B
DE/2013/05 Provision of Electrical and Mechanical Facilities for Tin Liu Ha Sewage Pumping Station and Tong Min Tsuen Sewage Pumping Station Completed
(Mar 2014 - Mar 2016)
[$18.5 million]
ECC Option C
DC/2013/07 Drainage Maintenance and Construction in Mainland North Districts (2015 – 2019) Ongoing
(Jan 2015 - Jan 2019)
[$359 million]
TSC Option A
DE/2014/03 Photovoltaic System at the Siu Ho Wan Sewage
Treatment Works and Three Energy-related Studies
Completed
(Feb 2015 - Dec 2016)
[$31.1 million]
ECC Option A
DC/2015/01 Relocation of Sha Tin Sewage Treatment Works to
Caverns - Ground Investigation
Ongoing
(Aug 2015 - Sep 2017)
[$135 million]
ECC Option B
DE/2013/06 Provision of Electrical and Mechanical Facilities for
Eight Sewage Pumping Stations in the North and Tai Po Districts, N.T.
Ongoing
(July 2015 - Jan 2019)
[$44.7 million]
ECC Option C
DC/2015/02 Drainage Maintenance and Construction in Mainland South Districts (2015 – 2019) Ongoing
(Nov 2015 - Nov 2019)
[$210 million]
TSC Option A
DE/2014/01 Provision of Electrical and Mechanical Facilities for
Shek Wu Hui Sewage Treatment Works – Further Expansion Phase 1A – Advance Works and Ng Chow South Road Sewage Pumping Station
Ongoing
(Dec 2015 - Oct 2018)
[$184 million]
ECC Option C
DE/2015/03 Upgrading of High Voltage Switchgears and Motor Starters in Cheung Sha Wan Sewage Pumping Station Ongoing
(Dec 2015 - May 2017)
[$17.69 million]
ECC Option A
DE/2015/02 Term Contract for Inspection, Overhaul and Testing of Electrical and Mechanical Installations at Various Sewage Treatment Works and Pumping Stations Ongoing
(Feb 2016 - Jan 2019)
[$489 million]
TSC Option A
DE/2015/06 Improvement Works of Rotating Biological Contactors (RBC) in Ma Wan Sewage Treatment Works Completed
(May 2016 - Aug 2017)
[$8.1 million]
ECC Option A
DC/2016/01 Construction of an Additional Sewage Rising Main between Tung Chung and Siu Ho Wan and Associated Works Ongoing
(Aug 2016 - Jul 2023)
[$507.5 million]
ECC Option D
DC/2015/05 Minor Drainage Improvement Works in Northern Hong Kong Island and North District Ongoing
(Oct 2016 - Apr 2020)
[$78.9 million]
ECC Option A
DC/2016/02 Building and Civil Maintenace and Minor Works to DSD Plants and Facilities (2016-2020) Ongoing
(Dec 2016 - Mar 2020)
[$130 million]
TSC Option A
DE/2016/03 Provision of Electrical and Mechanical Equipment for Detritor Nos. 1 and 2 of To Kwa Wan Preliminary Treatment Works Ongoing
(Dec 2016 - Mar 2018)
[$11.5 million]

ECC Short Contract

DE/2015/05 Improvement Works on gasholder No.3 at Shatin Sewage Treatment Works Ongoing
(Sept 2016 - Mar 2018)
[$6.44 million]

ECC Option A

DE/2016/07 Provision of Electrical and Mechanical Facilities for O Tsai Sewage Pumping Station and Enhancement Works of Electrical and Mechanical Facilities for Yung Shue Wan Sewage Treatment Works and Sok Kwu Wan Sewage Treatment Works Ongoing
(Sept 2016 - Nov 2017)
[$11.3 million]

ECC Option A

DE/2016/02 Provision of Electrical and Mechanical Equipment for Stage III of Sha Tin Sewage Treatment Works Ongoing
(Apr 2017 - Oct 2018)
[$7.4 million]

ECC Short Contract

DE/2015/07 Provision of Electrical and Mechanical Equipment for Kau To Sewage Pumping Station Ongoing
(Mar 2017 - Jun 2018)
[$5.0 million]

ECC Short Contract

DE/2016/13 Term Contract for Waste Disposal and Minor Civil Engineering Works at Various Sewage Treatment Works and Pumping Stations in the New Territories (2017 – 2020) Ongoing
(Apr 2017 - Mar 2020)
[$111.9 million]

TSC Option A

DE/2016/08 Term Contract for Inspection, Repair, Overhaul and Testing of Electrical and Mechanical Installations at Various Sewage Treatment Works and Pumping Stations in Sha Tin and Sai Kung (2017 – 2020) Ongoing
(Apr 2017 - Apr 2020)
[$105.2 million]

TSC Option A

DE/2016/11 Modification Works for Food Waste & Sewage Sludge Anaerobic Co-digestion Pilot Trial at Tai Po Sewage Treatment Works Ongoing
(Jun 2017 - Dec 2018)
[$15 million]

ECC Option A

The following DSD’s consultancy is adopting NEC:

 
Consultancy No. Consultancy Title Status
(Agreement Period)
[Awarded Consultancy Fee]
NEC Option
CE 63/2013(DS) Drainage Improvement Works in Happy Valley
Investigation, Design and Construction
Ongoing
(Apr 2014 - Nov 2019)
[$8.9 million]
PSC Option G

CE 56/2014(DS)

Relocation of Sham Tseng Sewage Treatment
Works to Caverns – Feasibility Study
Ongoing
(Dec 2014 - Aug 2018)
[$17.0 million]
PSC Option A
CE 21/2015(DS)

 

Review of Drainage Master Plan in Lantau and Outlying Islands - Feasibility Study Ongoing
(Jan 2016 - Jul 2018)
 [$6.0 million]
PSC Option A
CE 03/2015(DS) Yuen Long Effluent Polishing Plant - Investigation, Design and Construction Ongoing
(May 2016-Nov 2028)
[61.8miliion]
PSC Option C
CE 54/2016(DS) Drainage Improvement Works at North District - Packages A and C Ongoing
(May 2017-Jan 2019)
[6.3miliion]
PSC Option A

Related Presentations/Videos:

 
Topic Author Date Link/Download
Subcontracting in HKSAR’s NEC3 Target Cost Contracts Mr. LUK Wai Hung and Mr. LI Chung Leung, Ricky 10 Oct 2014 Link
NEC in Hong Kong Mr. TSUI Wai 28 Apr 2014 Link
New Scene of Contract Management Inspector of Works,Assistant Inspector of
Works and Works Supervisors under Contract
No. DC/2012/03
Dec 2013 Chinese Only
Presentations in DSD R&D Forum (NEC Sessions)   28 Nov 2013 Link
1) Cooperation and relationship with stakeholders Mr PANG Yat Pong, Derrick
(President of Chun Wo Construction & Engineering Co., Ltd.)
2) Enhancing Safety and Caring Culture through NEC’s Risk Reduction Mechanism Mr. WONG Siu Han, Rex
(Executive Director of
Kum Shing (K.F.) Construction Co. Ltd.)
3) “No Pain, No Gain” The Art of Pain/Gain Share Mr. KWONG Wing Kie, Ambrose
(Director of Kwan On Construction Co. Ltd.)
4) The Way of Collaboration Towards NEC Contract Mr CHAU Chi Fai, Adrian
Shun Yuen(Director of
Shun Yuen Construction Co Ltd.)
5) Tale of Two Contracts Ir LEE Kai Hung, Paul
(Assistant Managing Director
of Hsin Chong Construction Co. Ltd.)
NEC in DSD at 2013 Mr. TSUI Wai 25 Nov 2013 Link
Partners with a Common Goal - Hong Kong Government's first NEC Contract Development Bureau & Drainage Services Department 2012 Full Version

10 mins Version
A New Page of the NEC Expedition - DSD’s Initial Experience on 5 More NEC Pilot Contracts Mr. TSUI Wai 31 May 2013 Link
Why NEC in Hong Kong ? DSD's Experience on NEC Mr. TSUI Wai 21 Nov 2012 Link
Tender Preparation and Administration of NEC Contracts Mr. TSUI Wai 2 June 2012 Link
DSD NEC Pilot Project - Experience in Option C ECC Mr. TSANG Kwok-leung, Anthony 7 March 2012 Link
Administration Experience from Project Manager's Perspective Mr. CHAN Kin-kwong 2 February 2012 Link

 


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