NEC CONTRACTS GUARANTEE TRANSPARENCY IN LIMA 2019 CONSTRUCTION WORKS

Athletes from the Americas are currently competing in top-level modern sports venues. These construction works were built efficiently and quickly for the Lima 2019 Pan American and Parapan American Games thanks to an innovative contract model. 

In order to provide assistance in project management, including tenders on infrastructure and strategic sports services, Peru and the United Kingdom signed a government-to-government agreement. This promotes the knowledge transfer and will end once the Games are over.  

Thus, a new contract model came to Peru: the New Engineering Contract. Due to the short term, the NEC Option F contract was chosen. It suggests a collaborative work between the parties, prioritizes the execution period and allows the immediate resolution of any dispute without paralyzing the contract. It also proposes the payment of incentives for cost and term improvements. Being designed by engineers, the contract has a simple writing and is easy to understand, which decreases the risk of disputes between the parties.   

With the manager contracting procedure to be applied in NEC contracts, efficiency and transparency are guaranteed, but above all, innovation and compliance with ethical standards are promoted. All companies applying have the same chances of reaching the end of the tendering process. 

The agreement with the British Government also promotes the knowledge exchange in project management, contract administration, sporting events organization, and, especially, in policy implementation. This last one ensures the transparency and integrity of the management. 

“The investment has not only been in infrastructure, but in human capital, comprised by the collaborators and the thousands of volunteers. They have given their time and energy to be part of this project, which is now a reality and will have as legacy the transfer of knowledge thanks to the government-to-government agreement and the NEC contract model,” pointed out Amalia Moreno, the Lima 2019 executive secretary. 

This contract model made possible the construction of the most important Lima 2019 Games venues, such as the Pan American and Parapan American Village, the National Sports Village - VIDENA, the Callao Regional Sports Village, the Villa María del Triunfo Sports Center, the Villa El Salvador Sports Center and Las Palmas Shooting Range. 

It is worth mentioning that, for the first time in Latin America, large-scale infrastructure is developed through an agreement between Peru and the United Kingdom, for the design, engineering and construction of the Games infrastructure.  

NECs, used to build the construction works for the London 2012 Olympic Games, were designed by the UK Institution of Civil Engineers (ICE) in 1993 to manage large-scale projects, from engineering to services and minor purchases of goods.