Brooks, T; Spillane, J; Tansey, P and Hendron, C (2016) The impact of the recent economic recession on the operation of the NEC contract in Northern Ireland. Construction Management and Economics, 34(6), pp. 393-417. ISSN 01446193
Abstract
In May 2006, the New Engineering Contract (NEC) contract was introduced as the preferred contract for Northern Ireland public sector works. This was subsequently followed by the 2007 economic crash and ensuing recession, which continues to affect the Northern Ireland Construction Industry, to a greater extent than the remainder of the United Kingdom. However, use of the NEC contract has increased during this period, particularly in the public sector. There has been debate in the literature regarding the impact of the NEC contract on adversarial behaviour, but little consideration of the impact of external economic factors on the use of the NEC contract. Using a sequential mixed method approach, the study aims to fill this gap in knowledge through examination of the impact the economic downturn has had on the operation of the NEC contract in Northern Ireland. Qualitative and quantitative findings show that the demands placed by the NEC contract, and the effects of the economic recession, have exerted opposing forces on contract implementation, thus hindering its execution. The findings can lead to a deeper understanding, in the context of both industry and academia, of situations where a lack of resources may negatively impact the operation of the NEC contract.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contract administration; contractual relations; northern Ireland; recession |
| Index terms: | mixed method, recession, contract administration, Northern Ireland, New Engineering Contract, public sector, academia, economic factor, implementation, construction industry, adversarial behaviour, United Kingdom, contractual relations |
| Subjects: | data collection methods, contractual arrangements, economic analysis, economic concepts, Geography, contract management, physical geography and landforms, contract law, administrative law, industry analysis, conflict resolution, educational institutions |
| Topics: | Legal Issues, Contract Administration, Education, Business Strategy, Research Practice, Geographical Context, Stakeholder Management, Procurement |
| Descriptive scope: | 4 PCTE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here