Seeking the Optimisation of Public Infrastructure Procurement with NEC4 ECC: A Peruvian Case Study

Abstract

The modern civil engineering and construction sector requires collaborative work environments, learning and trust among all parties involved, qualities that are absent in the Peruvian reality. This study, which is based on an extensive literature review, investigates this challenge. The study reflects upon (i) the current situation of public works procurement in Peru and (ii) the New Engineering Contract (NEC), which has recently been implemented in Peruvian Special Public Infrastructure Projects. Comparisons are presented between the characteristics, documentation and roles of these two systems, with the purpose of understanding and representing the advantages, disadvantages and possibilities of integrating the good contractual management practices of the NEC4 Engineering and Construction Contract into the traditional Peruvian State Contracting Law (Ley de Contrataciones del Estado: LCE). The research is validated through the case study of a high-impact road infrastructure project in the city of Arequipa, Peru, which revealed five main deficiencies from Peruvian procurement processes which hinder good contractual management and, also, facilitated an initial assessment of the challenges and improvement opportunities in public infrastructure procurement. Thus, a contribution is made to closing the knowledge gap regarding the implementation of the NEC4 ECC in public sector works.