Early Contractor Involvement - Is it worth it?
18/11/24
Newsletter #33:
Welcome to the Instruct newsletter. All NEC, no AI, cause we’re keeping it real!
We’ve been having discussions this week about ECI and whether it is actually worth it, is it really?!
So this week we delve into the pros and cons and what you should think about when deciding.
What is ECI (Early Contractor Involvement)
ECI was introduced into the NEC4 ECC contract as an evolution from NEC3 (Included as X22). It’s a common term in the construction industry (hence why it is now in NEC itself) which is used to describe the process of bringing a Contractor onto a project before the Scope of what should be build is finalised.
This is often during the design phase, with ECI generally being used for the following:
Scoping and undertaking ground investigation
Reviewing designs and looking at potential construction issues
Assessing cost and helping create efficiencies
These are common, but ECI can be used for whatever the Client would like, in theory.
So if ECI is all about getting the Contractor involved earlier, what are the pros?
Pros (Benefits)
Taking the high level approach of why ECI can be beneficial, we would say the following are the main factors we see regularly. These are the benefits that can be brought by ECI.
Reduced construction cost due to potential issues being identified by the Contractor and corrected before its in construction. E.g. proposing a cheaper material which is available instead of the one specified.
Health and safety can be improved through assessment of buildability and methodology. If the Contractor sees an opportunity to change the design so construction is safer, this can be incorporated earlier. E.g. removing the need to drill holes in concrete (vibration issues) by proposing a different fixing.
Speed of construction can be improved by the Contractor assessing the programme for building the Scope, and proposing efficiencies for speed. E.g. using pre-cast concrete instead of in-situ.
Quality can be improved by reviewing the design and identifying potential issues which can be re-designed to improve quality. E.g. A connection detail between existing and new concrete could be susceptible to cracking in the future. Change the design to make it more robust etc.
But what about the cons? What are the disadvantages to ECI?
Cons
ECI doesn’t always bring benefit, sometimes it can cause more problems than solutions. Here are the common disadvantages we see.
ECI costs money. The Contractor will need to be paid to undertake ECI and they may not find anything of benefit.
It takes time to undertake thorough ECI, if the time is not available, ECI can cause distraction, pressure, and confusion.
The Contractor may not be willing to stand by the work they do during ECI, when the contract is in delivery. This means any issues identified with the work done during ECI by the Contractor may not be recoverable after the event.
Client’s don’t always know what they want and need from ECI. This makes it difficult to assess if the requirements of the Contractor have been achieved, and how much benefit the Client is getting.
The Contractor may not have the skills and expertise to undertake ECI. Whilst they may be familiar with the construction element, they may be less familiar with design and pre-contract activities. This can produce inefficient ECI work.
Once a Contractor has got involved with ECI, it is more difficult to contract with a different Contractor. This means its often a ‘one horse race’ when trying to negotiate the delivery contract, and this may not provide best value.
Consider this when thinking about ECI (from a Client’s perspective):
What are you trying to achieve by undertaking ECI? Is it verifying quality, reducing cost, reducing programme, all 3 and more? Be clear about what you want it for.
Are you willing to pay for ECI if it results in you getting none of the benefits you were expecting? This could be reality.
Do you have other Contractor’s you are willing to proceed with if the ECI Contractor does not deliver the results you need?
Do you have a clear Scope for the Contractor to follow during ECI? Who will be in charge of managing this Scope?
Do you have the expertise to critique the Contractor’s work to assess whether it meets the requirements?
How will you ensure that the Contractor takes liability for the work during ECI, when the project is post-contract? E.g. If the Contractor suggests using a certain material, which turns out to be a failure during construction, who carries that liability?
Have you allowed enough time for a thorough ECI period? Projects are always tight on time, but rushing ECI can be problematic.
Do you have the budget for ECI, and the budget for any changes which the Contractor may identify? Not all changes will save money.
Thoughts?
Are you a Client or Contractor?
Have you used ECI and what is your experience?
Would you recommend it or not?