Gov't introduces new engineering contract standard template

It is the second standard contract template published by the Development Bureau.

The government has introduced the New Engineering Contract (NEC) Term Service Contract (TSC) standard template to facilitate the appointment of contractors for fixed periods to manage maintenance, repairs, or other services on operational assets. 

Unlike traditional contract models focused on obligations and responsibilities, the NEC encourages collaboration between contracting parties to address problems within specific timeframes, potentially mitigating time and cost overruns.

The NEC framework is expected to play a pivotal role in delivering major infrastructure projects, such as the Northern Metropolis, Hospital Development initiatives, public housing schemes, and railway expansions, reinforcing Hong Kong's reputation as an international infrastructure hub.

Ricky Lau, the Permanent Secretary for Development (Works), highlighted that the NEC is widely embraced by stakeholders in Hong Kong's construction sector. 

He emphasised its effectiveness in aligning parties toward shared objectives and incentivising proactive management and resolution of contractual issues. 

The NEC TSC is the second standard contract template published by the Development Bureau, following the release of the Engineering and Construction Contract template in 2023. 

Both templates are tailored to comply with local legislation and procurement practices, whilst also promoting innovation and technology in public works.