Drainage Services Department

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The "New Engineering Contract" (NEC) is a new form of contract introduced for public works projects. Under NEC, all parties in the contract, including the project management office and the contractor, will need to follow the contract conditions under the NEC to manage the project in a partnering manner. Through the implementation of contractual partnering, a high level of mutual trust and co-operation can be established among the parties involved, thus minimizing the number of contractual disputes and avoiding delay.

NEC characteristics

Team Spirit and goal alignment
Pain-gain share mechanism to enhance cost effectiveness
Reduces risk of cost and time overruns

The following DSD’s contracts are adopting NEC:

Contract No.	Contract Title	Status [Awarded Contract Sum]	NEC Option
DC/2008/02	Improvement of Fuk Man Road Nullah in Sai Kung	Completed [$50 million]	ECC Option C
DC/2012/01	Building and Civil Maintenance and Minor Works to DSD Plants and Facilities (2012-2016)	Completed [$160 million]	TSC Option A
DC/2012/03	Happy Valley Underground Stormwater Storage Scheme	Completed [$678 million]	ECC Option C
DC/2012/05	Sewerage at Yuen Long Kau Hui and Shap Pat Heung	Completed [$145 million]	ECC Option D
DC/2012/07	Lam Tsuen Valley Sewerage - Village Sewerage, Stage 2, Phase 1	Completed [$173 million]	ECC Option B
DC/2012/09	Pak Hok Lam Trunk Sewer and Sha Tau Kok Village Sewerage	Completed [$187 million]	Framework Contract + ECC Option B
DE/2013/05	Provision of Electrical and Mechanical Facilities for Tin Liu Ha Sewage Pumping Station and Tong Min Tsuen Sewage Pumping Station	Completed [$18.5 million]	ECC Option C
DE/2014/03	Photovoltaic System at the Siu Ho Wan Sewage Treatment Works and Three Energy-related Studies	Completed [$24.398 million]	ECC Option A
DE/2015/03	Upgrading of High Voltage Switchgears and Motor Starters in Cheung Sha Wan Sewage Pumping Station	Completed [$17.69 million]	ECC Option A
DE/2015/05	Improvement Works on Gasholder No.3 at Shatin Sewage Treatment Works	Completed [$6.44 million]	ECC Short Contract
DE/2015/06	Improvement Works of Rotating Biological Contactors (RBC) in Ma Wan Sewage Treatment Works	Completed [$8.18 million]	ECC Option A
DE/2016/07	Provision of Electrical and Mechanical Facilities for O Tsai Sewage Pumping Station and Enhancement Works of Electrical and Mechanical Facilities for Yung Shue Wan Sewage Treatment Works and Sok Kwu Wan Sewage Treatment Works	Completed [$11.34 million]	ECC Option A
DC/2013/07	Drainage Maintenance and Construction in Mainland North Districts (2015 – 2019)	Completed [$284 million]	TSC Option A
DC/2015/01	Relocation of Sha Tin Sewage Treatment Works to Caverns - Ground Investigation	Completed [$163 million]	ECC Option B
DC/2015/02	Drainage Maintenance and Construction in Mainland South Districts (2015 – 2019)	Ongoing [$210 million]	TSC Option A
DC/2015/05	Minor Drainage Improvement Works in Northern Hong Kong Island and North District	Ongoing [$78.9 million]	ECC Option A
DC/2016/01	Construction of an Additional Sewage Rising Main between Tung Chung and Siu Ho Wan and Associated Works	Ongoing [$507.5 million]	ECC Option D
DC/2016/02	Building and Civil Maintenance and Minor Works to DSD Plants and Facilities (2016-2020)	Ongoing [$188 million]	TSC Option A
DC/2017/01	Construction of dry weather flow interceptor at Cherry Street box culvert	Ongoing [$258.2 million]	ECC Option C
DC/2017/02	Rehabilitation of Trunk Sewers in Kowloon, Shatin and Sai Kung	Ongoing [$320 million]	ECC Option D
DC/2017/03	Upgrading of West Kowloon and Tsuen Wan sewerage – phase 1	Ongoing [$140.57 million]	ECC Option B
DC/2017/04	Drainage Maintenance and Construction in Hong Kong Island and Islands Districts (2017-2021)	Ongoing [$308 million]	TSC Option A
DC/2017/05	Enhancement Works for Kwun Tong Sewage Pumping Station	Ongoing [$727.7 million]	ECC Option C
DC/2018/01	Construction of Village Sewerage at Peng Chau and Mui Wo, Modification Works at Tai Po and Siu Ho Wan Sewage Treatment Works and Minor Drainage and Sewerage Works in Urban Area and New Territories	Ongoing [$206.14 million]	ECC Option B
DC/2018/02	Upgrading of Sewage Pumping Stations and Sewerage along Ting Kok Road	Ongoing [$463.36 million]	ECC Option C
DC/2018/03	Expansion of Sha Tau Kok Sewage Treatment Works Phase 1 and Village Sewerage in Tong To	Ongoing [$1122.41 million]	ECC Option C
DC/2018/04	Lei Yue Mun Village Sewerage	Ongoing [$122.55 million]	ECC Option D
DC/2018/05	Relocation of Sha Tin Sewage Treatment Works to Caverns – Site Preparation and Access Tunnel Construction	Ongoing [$811.405 million]	ECC Option D
DC/2018/08	Inter-reservoirs Transfer Scheme – Water Tunnel between Kowloon Byewash Reservoir and Lower Shing Mun Reservoir	Ongoing [$762.78 million]	ECC Option C
DC/2018/09	Rehabilitation of trunk sewers in Tuen Mun	Ongoing [$360 million]	ECC Option D
DC/2018/10	Condition Survey and Rehabilitation of Underground Sewers and Stormwater Drains - Stage 1	Ongoing [$276 million]	ECC Option B
DC/2018/11	Upgrading of Central and East Kowloon Sewerage - Phase 3	Ongoing [$230.89 million]	ECC Option C
DC/2019/01	Drainage Maintenance and Construction in Mainland North Districts (2019-2023)	Ongoing [$390 million]	TSC Option A
DC/2019/03	Revitalisation Works of Jordan Valley Nullah and Minor Drainage and Sewerage Works in Urban Area and New Territories	Ongoing [$177.64 million]	(NEC4) ECC Option C
DE/2013/06	Provision of Electrical and Mechanical Facilities for Eight Sewage Pumping Stations in the North and Tai Po Districts, N.T.	Ongoing [$44.7 million]	ECC Option C
DE/2014/01	Provision of Electrical and Mechanical Facilities for Shek Wu Hui Sewage Treatment Works – Further Expansion Phase 1A – Advance Works and Ng Chow South Road Sewage Pumping Station	Ongoing [$183 million]	ECC Option C
DE/2015/02	Term Contract for Inspection, Overhaul and Testing of Electrical and Mechanical Installations at Various Sewage Treatment Works and Pumping Stations	Ongoing [$488.9 million]	TSC Option A
DE/2015/07	Provision of Electrical and Mechanical Equipment for Kau To Sewage Pumping Station	Completed [$4.99 million]	ECC Short Contract
DE/2016/01	Provision of Electrical and Mechanical Equipment for Lok Chui Street, Siu Lam Psychiatric Centre and Fu Tei Ha Tsuen Sewage Pumping Stations	Ongoing [$19.0 million]	ECC Option A
DE/2016/02	Provision of Electrical and Mechanical Equipment for Stage III of Sha Tin Sewage Treatment Works	Completed [$7.38 million]	ECC Short Contract
DE/2016/03	Provision of Electrical and Mechanical Equipment for Detritor Nos. 1 and 2 of To Kwa Wan Preliminary Treatment Works	Completed [$11.5 million]	ECC Option A
DE/2016/04	Term Contract for Waste Disposal and Minor Civil Engineering Works for Various Sewage Treatment Plants	Ongoing [$123.63 million]	TSC Option A
DE/2016/08	Term Contract for Inspection, Repair, Overhaul and Testing of Electrical and Mechanical Installations at Various Sewage Treatment Works and Pumping Stations in Sha Tin and Sai Kung (2017 – 2020)	Ongoing [$120 million]	TSC Option A
DE/2016/10	Provision of an Additional CHP Generating System for Sha Tin Sewage Treatment Works	Ongoing [$16.56 million]	ECC Option A
DE/2016/11	Modification Works for Food Waste & Sewage Sludge Anaerobic Co-digestion Pilot Trial at Tai Po Sewage Treatment Works	Ongoing [$15 million]	ECC Option A
DE/2016/13	Term Contract for Waste Disposal and Minor Civil Engineering Works at Various Sewage Treatment Works and Pumping Stations in the New Territories (2017 – 2020)	Ongoing [$168 million]	TSC Option A
DE/2017/01	Upgrading of Kwun Tong Preliminary Treatement Works	Ongoing [$206.65 million]	ECC Option C
DE/2017/03	Term Contract for Inspection, Repair, Overhaul and Testing of Electrical and Mechanical Installations at Various Sewage Treatment Works and Pumping Stations in New Territories West and New Territories North (2017-2020)	Ongoing [$185 million]	TSC Option A
DE/2017/04	Provision of Deodourizing Systems and Covers for Preliminary Treatment Facilities in Tai Po Sewage Treatment Works	Ongoing [$9.72 million]	ECC Option A
DE/2017/05	Upgrading of Screw Pumps for To Kwa Wan Preliminary Treatment Works	Ongoing [$10.49 million]	ECC Option A
DE/2018/05	Term Contract for Inspection, Overhaul and Testing of Electrical and Mechanical Installations at Stonecutters Island Sewage Treatment Works	Ongoing [$332.8 million]	TSC Option A
DE/2018/06	Upgrading of Tai O Wing On Street Stormwater Pumping Station	Ongoing [$8.6 million]	ECC Option A
DE/2018/07	Provision of a Combined Heat and Power (CHP) Generating System for Tai Po Sewage Treatment Works	Ongoing [$187.716 million]	ECC Option A
DE/2018/08	Term Contract for Overhaul, Maintenance, Testing and Plant Engineering Works of Electrical and Mechanical Installations at Various Sewage Treatment Facilities and Pumping Stations on Lantau and Outlying Islands (2019-2022)	Ongoing [$226.5 million]	TSC Option A
DE/2018/09	Provision of Deodourizing Systems and Sludge Scrapers for Sedimentation Facilities in Tai Po Sewage Treatment Works	Ongoing [$24.48 million]	ECC Option A
DE/2018/10	Provision of Deodourisation Units at Siu Ho Wan Sewage Treatment Works	Ongoing [$13.43 million]	ECC Option A
DE/2018/11	Provision of Lifting Appliance Facilities for Sok Kwu Wan Sewage Treatment Works and Yung Shue Wan Sewage Treatment Works, Lamma Island	Ongoing [$4.966 million]	ECC Option A
DE/2018/12	Term Contract for Maintenance and Overhaul of Electrical and Mechanical Installations at Various Sewage Treatment and Flood Protection Facilities in Hong Kong and Kowloon (2019-2022)	Ongoing [$183.91 million]	TSC Option A

The following DSD’s consultancy is adopting NEC:

Consultancy No.	Consultancy Title	Status (Agreement Period) [Awarded Consultancy Fee]	NEC Option
CE 63/2013(DS)	Drainage Improvement Works in Happy Valley Investigation, Design and Construction	Ongoing [$8.9 million]	PSC Option G
CE 56/2014(DS)	Relocation of Sham Tseng Sewage Treatment Works to Caverns – Feasibility Study	Completed [$17.0 million]	PSC Option A
CE 21/2015(DS)	Review of Drainage Master Plan in Lantau and Outlying Islands - Feasibility Study	Ongoing [$6.0 million]	PSC Option A
CE 03/2015(DS)	Yuen Long Effluent Polishing Plant - Investigation, Design and Construction	Ongoing [61.8 million]	PSC Option C
CE 54/2016(DS)	Drainage Improvement Works at North District - Packages A and C	Ongoing [6.3 million]	PSC Option A
CE 49/2016(DS)	Review of Drainage Master Plan in Tuen Mun, Tsuen Wan and Kwai Tsing - Feasibility Study	Ongoing [8 million]	PSC Option A
CE 65/2017(DS)	Extension of Siu Ho Wan Sewage Treatment Works - Feasibility Study	Ongoing [13.888 million]	PSC Option C
CE 88/2017(DS)	Drainage Improvement Works in Mong Kok – Investigation	Ongoing [6.8 million]	(NEC4) PSC Option A
CE 6/2018(DS)	Drainage Improvement Works in Kwun Tong – Investigation	Ongoing [4.648 million]	PSC Option A
DP 11/2018	Drainage Improvement Works at Ngong Ping – Adoptive Design Review in Pre-contract Stage	Ongoing [2.4 million]	PSC Option A

Related Presentations/Videos (Recent 5 years):

Topic	Author	Date	Link/Download
Subcontractor Leadership Summit 2018 – Sharing on Challenges, Opportunities and Experiences in Adopting Collaborative Contract	Mr. LAI Yuk On	12 Nov 2018	Chinese only
Successful Application of NEC in Government (DSD) Projects	Mr. LAI Yuk On Mr. LEUNG Cheuk Lun	31 July 2018	Link
Sharing at NEC Asia Pacific Users' Group Briefing	Mr. MAK Ka Wai	27 April 2018	Link
Contract Innovation through Additional Clause 2017 - Subcontracting in Happy Valley Underground Stormwater Storage Scheme (HVUSSS)	Mr. KAN Hon Shing	29 Sep 2017	Link
NEC Implementation in the HVUSSS	Ms. CHENG Nga See Ellen Mr. LEUNG Cheuk Lun Mr. CHEUNG Hon Hei Mr. TONG Kwan Shing	30 Jun 2017	Link
NEC in Action 2015 - Collaborative Value-engineering Management in HVUSSS	Mr. LUK Wai Hung	10 Dec 2015	Link
Subcontracting in HKSAR’s NEC3 Target Cost Contracts	Mr. LUK Wai Hung and Mr. LI Chung Leung, Ricky	10 Oct 2014	Link