The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

NEC4 Alliance Contract – An Overview

NEC4 Alliance Contract – An Overview
08 July 2020

After reporting on CBRE’s involvement in the Hallam Alliance, an early adopter of the NEC4 Alliance Contract, we take a closer look at how it can be used in the FM world.

Put simply, the NEC4 Alliance Contract is designed for use on major projects where longer-term collaborative ways of working can be created, reflecting best practice in procurement and project management. 

The Hallam Alliance is one of the first partnerships to use this type of contract for a university building programme. It involves three of its partner suppliers: Arup (design-led consultancy), BAM (construction) and CBRE.

But what else is there to know about this contract and what is its significance for facilities management?


“We believe NEC4’s diverse range of definitive end-to-end project management contracts will empower users to deliver projects on time, on budget and to the highest standards now and in the future to the benefit of both industry and society.”

–Rekha Thawrani

Global Head, NEC Contracts and General Manager


What is the NEC4 ALC and Why Use It?


The NEC4 Alliance Contract (ALC) was introduced in June 2018, a contract which incentivises parties to collaborate more closely. 

The contract is known as a “‘true alliance arrangement in which the client and all key members of the supply chain are engaged under a single contract.” All members of the alliance have an equal voice and share in the performance of the alliance as whole, as opposed to their own individual performance. This can help reduce the potential for disputes.

The contract is designed for use on major projects or programmes of work, where longer-term collaborative ways of working are to be created. It can also be used to deliver a programme where a number of lower-value projects can be combined to create a major programme of work.


The Structure


Key contractors, consultants and suppliers are called “Partners” within the ALC, (which together make up the Members”). All Members of the alliance have an equal voice and share in the risk and reward for the performance of the alliance as a whole. 

According to Clarkslegal, a commercial law firm, the client has two roles within the ALC:


  1. From the outset setting objectives and selecting the Partners
  2. Once the work begins carrying out assurance on cost and quality as stated in the scope and checking and making payment. 


An alliance board, which includes a representative from the client and each Partner, has overall responsibility for the alliance and provides the strategy, allocates work, appoints an alliance manager, makes decisions and help to resolve disputes. The alliance manager has similar duties as a traditional project manager under other NEC contracts.


The Benefits


The NEC describes the ALC as a “contract suite with improved flexibility, clarity and ease of use”. Whether supplying high-value goods or low-risk items, NEC4 enables users to deliver projects on time, on budget and to the highest standards, they claim.

Other benefits include: 


  • Streamlined processes and updated definitions
  • Improved contract administration and reduced administration costs
  • Greater clarity and reduced potential for problems
  • Provision for building information modelling and early contractor involvement
  • Improved risk opportunity and risk management


With reference to the earlier mentioned Hallam Alliance, both Sheffield Hallam University and outsourcing FM service provider CBRE agreed that the NEC4 contract provides a unique opportunity to collaborate.

Daniel Vaughan, Director at CBRE, commented at the time: “Having FM services involved from the outset provides the opportunity for operational and user needs to shape design and construction helping to ensure smoother handover of buildings, improved quality and performance and the reduction of in-use costs and user issues, creating the best possible user experience.”

Picture: A photograph showing one person offering another person a pen, to sign a contract

Article written by Ella Tansley | Published 08 July 2020


Related Articles

Sheffield Hallam University Creates New Delivery Model Alongside CBRE

Sheffield Hallam University has created a first of its kind delivery model which aims to inspire industry change. The Hallam Alliance is a new construction industry...

 Read Full Article
Utilising the Talent Pool of Ex-Military Personnel in Facilities Management

The Career Transition Partnership recommends facilities and workplace management as a suggested career path for ex-Service personnel.  ThisWeekinFM spoke to...

 Read Full Article
FM - CBRE Top Trends Report

December 11 saw CBRE Global Workplace Solutions publish the 2019 edition of their Top Trends in Facilities Management report. The latest version of this annual report...

 Read Full Article
Three Is The Magic Number

CBRE GWS has taken the Total FM contract with Three Mobile. Global Workplace Solutions has got the number following a competitive tender process. The contract covers...

 Read Full Article
Tackling The People Challenge Through Technology

Report - CBRE and ThisWeekinFM recently lead a delegation of experts to provide a briefing on technology in workplace and real estate strategy. The breakfast briefing...

 Read Full Article
British Library Books Long-term FM Deal

The British Library has taken on CBRE Global Workplace Solutions on a four year contract - with up to three one year extensions. The contract will see CBRE provide FM...

 Read Full Article
Holland Match - It's All Gone Gooee Over There

ProptTech history has been made with global M&E firm Croonwolter&dros agreeing to connect the 5,000 commercial buildings it runs in the Netherlands  to the...

 Read Full Article
Thunderstruck, Telent, TECS, TraQ-it, Toyota - Total FM News

Telent For Tech; TraQ-it At Toyota; Savills Sets Sail In Workplace Sector; CBRE Thunderstruck By AC/DC Deal; and All MoD Cons In Cyprus & Falklands - all the headline...

 Read Full Article
Real Estate & FM Integration - Cargo Co Goes Global

Cargotec Oyj, a global cargo handling equipment supplier, has appointed CBRE GWS to gradually integrate real estate services and facility management in up to 250...

 Read Full Article
Data Centre Efficiency Acquisition Announced

CBRE Group has purchased Romonet, a global company that utilises cloud based analytics software to unlock efficiencies and increase capacity at data centres. John...

 Read Full Article