Levelling the playing field
|
The Electrical Contractors' Association (ECA) has long maintained a view on what constitutes standard industry practice in contracting.
Its perspective is informed by enquiries from nearly 3,000 specialist contractors. ECA is therefore able to highlight ostensibly onerous practices within an industry where contracts can be unforgiving.
In the construction and facilities management sectors, clients attempt to dictate the terms and conditions upon which ECA Members are engaged to carry out their work.
There are two ways in which ECA Members are commonly asked to enter into contracts with their clients, namely:
- Modified standard form of contracts i.e. JCT or NEC.
- In-house bespoke terms and conditions which are procured as an investment in commercial risk protection by the client in question.
There are two reasons why modified standard forms or bespoke forms of contract come about:
- To recognise specific project risks, e.g. if the project is on a high security risk site, there may be additional contractual requirements surrounding security;
- Commercial risk transfer: in order to de-risk the commercial model of their own business, clients will often seek – either through standard form modifications or bespoke terms – to push as much commercial risk downwards within the contractual chain as possible.
The latter approach is intended to safeguard the profitability of their businesses, but it will often pass on unmanageable and overly onerous risk to the party carrying out the works.
ECA has published a guidance document that identifies common areas of standard form contracts (which broadly represent the industry norm for what is acceptable risk allocation) and/or bespoke terms and identifies where those issues are modified to an ECA Member’s detriment.
The document also outlines the risk of those types of clauses; it suggests a risk-proportionate approach and rationale for finding and negotiating a compromise which aligns the risks involved with the parties who are realistically and proportionately in a position to manage those risks.
ECA wishes to identify and inform the engineering services sector and ECA Members’ decisions on what ‘fair, reasonable and good contractual practice’ looks like. ECA remains committed to fair and open competition and this document is not designed in any way to dictate what may be an appropriate risk allocation for a specific project, or act as a substitute for ECA Members obtaining project and context-specific legal advice.
ECA Members can click here to view ECA guidance on what are considered onerous contractual practices and how to handle them.
[edit] About this article
This article was written by Rob Driscoll, ECA Director of Legal and Business. It was previously published on the ECA website in August 2019 and can be accessed here.
[edit] Related articles on Designing Buildings Wiki
- Bespoke construction contract
- Complex project.
- Concession Contracts Regulations.
- Constructing Excellence contract
- Contract documents for construction
- Core clause.
- Intermediate building contract
- JCT
- JCT Construction management contract
- Modifying clauses in standard forms of construction contract
- NEC Option A: Priced contract with activity schedule
- NEC3
- Non-performance.
- PPC 2000
- Procurement plan.
- Procurement route
- Procurement team
- Risk allocation.
- Standard form of contract
- Traditional contract for construction
- Traditional contract: tender
- Typical tender process for construction projects
--ECA
Featured articles and news
UK Net Zero Carbon Buildings Standard V1 published
Free-to-access technical standard to enable robust proof of a decarbonising built environment.
Prostate Cancer Awareness Month
Why talking about prostate cancer matters in construction.
The Architectural Technology podcast: Where it's AT
Catch up for free, subscribe and share with your network.
The Association of Consultant Architects recap
A reintroduction and recap of ACA President; Patrick Inglis' Autumn update.
The Home Energy Model and its wrappers
From SAP to HEM, EPC for MEES and FHS assessment wrappers.
Future Homes Standard Essentials launched
Future Homes Hub launches new campaign to help sector prepare for the implementation of new building standards.
Building Safety recap February, 2026
Our regular run-down of key building safety related events of the month.
Planning reform: draft NPPF and industry responses.
Last chance to comment on proposed changes to the NPPF.
A Regency palace of colour and sensation. Book review.
Delayed, derailed and devalued
How the UK’s planning crisis is undermining British manufacturing.
How much does it cost to build a house?
A brief run down of key considerations from a London based practice.
The need for a National construction careers campaign
Highlighted by CIOB to cut unemployment, reduce skills gap and deliver on housing and infrastructure ambitions.
AI-Driven automation; reducing time, enhancing compliance
Sustainability; not just compliance but rethinking design, material selection, and the supply chains to support them.
Climate Resilience and Adaptation In the Built Environment
New CIOB Technical Information Sheet by Colin Booth, Professor of Smart and Sustainable Infrastructure.
Turning Enquiries into Profitable Construction Projects
Founder of Develop Coaching and author of Building Your Future; Greg Wilkes shares his insights.





















