Assessing the viability of adopting the new engineering contract (NEC4) in the Nigerian construction industry: toward a framework for implementation

The construction sector in Nigeria faces numerous challenges, among the most critical being the limitations of the predominant Standard Forms of Contracts (SFC) used for projects, particularly the Joint Contract Tribunal (JCT) 1980-1990 edition as amended. This SFC is characterised by its non-collaborative nature and inherent weaknesses, leading to delayed projects, cost overruns, low product quality, and disputes. Motivated by these limitations, this study aimed to investigate the viability of implementing the NEC4 SFC, which is globally acknowledged for its clarity, collaborative and effective approach to project management. While the most recent JCT (2024) brings notable improvements in clarity, modern language and inclusion of collaborative procedures, NEC4 was selected as the principal modern benchmark based on structural and procedural innovation, philosophical alignment with performance-based contracting, contextual applicability, and global adaptability. This research adopted a pragmatic mixed-method approach, using a sequential design that began with quantitative surveys followed by qualitative in-depth interviews to explore construction industry practitioners’ perceptions of the SFCs used in the country and the possibility of a potential shift to NEC4. This philosophical stance allowed the study to explore both objective and subjective perspectives, depending on what best addressed the research questions. A total of 350 questionnaires were distributed and 153 (43.7%) were returned as valid responses. These were analysed using both descriptive and inferential statistical techniques and SPSS tools. Additionally, in-depth interviews were conducted with 12 key industry stakeholders. The data gathered were analysed using thematic analysis with the aid of the Nvivo 12 Pro software. The findings revealed a consensus among practitioners on the JCT80-90 edition’s shortcomings, such as complexity, lack of clarity, rigidity in handling variations, reactive approach to dispute resolution, and lack of explicit provisions to manage costs effectively among contracting parties. All these culminate in extended legal battles and inefficiencies. In contrast, there is a significant preference for NEC4, with 66% of respondents advocating for its implementation in Nigeria. Respondents in the study expressed favourable views of NEC4, particularly appreciating its features like contract flexibility, collaborative ethos, legal clarity, and a proactive approach to dispute resolution. These aspects of NEC4 were seen as a solution to the major issues plaguing the current use of the JCT 80-90 edition and other non-collaborative contracts being used in Nigeria construction sector, such as the FIDIC_99 and some of its variants like the Bureau of Public Procurement form. However, the transition to NEC4 is not going to be void of challenges. Cultural resistance, lack of government support, corruption and economic factors were identified as potential barriers in this regard. To address these, this study developed a comprehensive framework for the adoption of NEC4, which proposes training programs, awareness campaigns, NEC4 pilot projects, government involvement and fostering a collaborative culture. A key limitation in this study is the reliance on professional perceptions, which may vary based on familiarity with NEC4. Nonetheless, the study concludes that the adoption of NEC4 in the Nigerian construction industry is highly viable and beneficial, as it aligns with the modern industry requirements, promising significant improvements in contractual administration and project management practices.

Citation

Mukhtar, M. (2025) Assessing the viability of adopting the new engineering contract (NEC4) in the Nigerian construction industry: toward a framework for implementation. University of Wolverhampton. https://wlv.openrepository.com/handle/2436/626167

Publisher

University of Wolverhampton

URI

https://wlv.openrepository.com/handle/2436/626167

Type

Thesis or dissertation

Language

en

Description

A thesis submitted in partial fulfilment of the requirements of the University of Wolverhampton for the degree of Doctor of Philosophy.

Collections

Theses and Dissertations