NEC Competency Framework

Melanie Hardingham

Earlier this year, the NEC released its new competency framework designed to enable NEC users to assess competency levels and identify skills and knowledge gaps across the project team. Peter Higgins, Chair of the NEC4 Contract Board, has commented:

“This will give all those involved in the contract greater confidence in each other’s skills, and thus assist in working in a spirit of mutual trust and co-operation.”

This new tool details the values, attributes and attitudes required by all parties on NEC projects and could help address wider challenges presented by the modernised construction environment.

Skills Shortage

The construction industry continues to experience a challenging labour and skills shortage.

The construction industry continues to experience a challenging labour and skills shortage. In its 2022-2023 Industry Skills Plan Update, the Construction Leadership Council reported 50,000 vacancies in the industry, the highest level recorded for construction.

Worryingly, it is predicted that these pressures will continue to grow, with the CITB’ Construction Skills Network estimating an annual need to recruit 50,000 workers above current trends.

To add to this, infrastructure projects are becoming more complex with government policies and new legislative requirements, including Net Zero commitments and addressing Building Safety needs. These new requirements are fundamentally changing the construction environment and the current workforce will need to develop its wider skills, knowledge and behaviours to meet these new challenges.

The NEC’s Competency Framework approach

The framework’s competencies fall into 4 overall categories:

General knowledge and awareness including key areas of sustainability and climate change, legislation and compliance and collaboration skills.
Contract documents including procurement options, drafting scope and pricing documents.
Management including management of risk, design, commercial, programme/plan and quality.
Resolving and avoiding disputes.

Each competency is defined by a set of measured and observed characteristics set against 3 levels:

Foundation level, targeting those new entrants to the industry, to assist with equipping them with the required level of skills and knowledge to address the challenges facing them.
Practitioner level
Specialist level

The competency framework is designed to help all those involved to select appropriate people and to identify the skills required in a modernised industry to effectively manage the NEC contracts. Often, additional training and development is required to get the best results from a proposed contract. The competency framework will enable employers to carry out their own assessments of whether the skill levels are sufficient to carry out the relevant duties, or whether additional training or other support is needed.

Ensuring that core competencies are assessed and developed (where required) should, in theory, lead to better project delivery.

Focus areas, for example, material shortages

In the last month, the Builders Merchants Federation and the Construction Products Association have advised that regions are reporting the best product availability in the last two years, both in range and volume of products available and delivery / lead times, though with some exceptions.

However, it has been a tough two years for material shortages and undoubtedly it will continue to be a challenge in the future. Whilst to an extent unavoidable, the risk can be mitigated through an open and prompt dialogue in respect of potential price increases, unavailability of products / materials or longer lead in times.

At the heart of the NEC contracts is communication and collaboration.

The key to effectively managing this process will sit with those responsible for administering the contract and managing the project.

Making the most of the NEC’s project management tools

The competency framework assists to identify competencies required to understand and facilitate the contract in the manner it is intended, using the NEC contracts’ established project management tools to their best effect.

For example:

Early warnings: where the contractor and project manager must notify each other of any matter that could affect cost, completion, progress or quality of the project. The competency framework will help identify the skills required to better manage risks, such as material shortages, under the contract.
Time bar provisions applied to compensation events and disputes: to ensure that all matters are dealt with in a timely matter. It is important that those responsible for administering the contract are aware of and proactively adhere to these provisions, so as to properly implement delivery, avoid unnecessary delays to the project and prevent disputes from festering.

Outlining the expectations and competencies required from individuals at the outset will help organisations select the right people with the requisite skill level for the project in hand. It could also help to pinpoint where there are knowledge and experience gaps across the project team and identify where additional training is required to get the best results.

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