How one shall interpret ‘spirit of mutual trust and co-operation’ in NEC contracts

Abstract

Promoting the ‘spirit of mutual trust and co-operation’ has long been regarded as the ‘pillar’ of NEC contracts, which reflects the recommendation of the Latham report. Undoubtedly, this clause serves as a good catalyst that suppresses adversarial behaviour among parties. Nevertheless, this clause has recently sparked hot debates concerning its legal implication and interpretation. Some commenters claim that the clause refers to good faith obligation, while others suggest that it does not. This paper aims to conduct a review regarding this issue and provides a rough guideline for practitioners.