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Reference: NEC/ECC/Y(UK)2/April 1998
G:\NEC\Main\2 pages 2 and 3 April 1998
NEC Engineering and Construction Contract
to take into account
THE HOUSING GRANTS, CONSTRUCTION AND REGENERATION ACT
1996 (PART II)
The Institution of Civil Engineers
The Institution of Civil Engineers has approved amendments produced by its
NEC Panel to cover the introduction of the Housing Grants, Construction and
Regeneration Act 1996 (Part II) for use with the NEC Engineering and
Construction Contract in England, Wales, Scotland and Northern Ireland.
Option Y(UK)2: The
Regeneration Act 1996
This option is prepared solely for use on contracts which are subject to the
Housing Grants, Construction and Regeneration Act 1996 (“the Act”). The
option should not be used in other circumstances.
If the contract is subject to the Act, this option is incorporated into the
contract by making the following statement in the Contract Data:-
1. General The conditions o
contract are the core clauses for O
tions . . . . . . .
the ICE A
of the second
edition (November 1995) of the NEC Engineering and Construction
The two principles contained in this Act, which affect the NEC family of
contracts, are those related to payment and adjudication. The definition of a
“construction contract” in this Act is wide ranging and can be found in Section
104. It covers not only an agreement to carry out “construction operations”
but also an agreement to provide professional services for a “construction
The definition of a “construction operation” can be found in Section 105(1) of
the Act. The operations and contracts that are not subject to the Act are
defined in Sections 105(2) and 106. In the United Kingdom (England, Wales,
Scotland and Northern Ireland), the Parties to a contract should consider
carefully whether the operation is subject to the Act before proceeding. If the
operation or contract is subject to the Act, it is intended that, by incorporating
Option Y(UK)2 in to the contract, the provisions of the statutory Scheme for
Construction Contracts do not become implied terms of the contract (S.
114(4)). Parties must be aware that it is not possible to contract out of a
Clauses Y2.1 to 2.4 have been drafted with the intention of complying with
Sections 109 to 113 and Clauses Y2.5 and 2.6 have been drafted with the
intention of complying with Section 108 of the Act.