Exploring the essence and extent of 'mutual trust and co-operation'. [Blog post]

Mante, Joseph

Abstract

Recent court decisions have equated the NEC clause 10 'mutual trust and co-operation' duty to good faith, but good faith is a much broader concept. Part of the English courts' approach to good faith has been to rely on common law and equitable principles to achieve good faith outcomes. Other decisions confirm that clause 10 does not impose a fiduciary duty. 'Mutual trust' and 'co-operation' are established principles in English law, requiring NEC parties to have confidence in each other's credibility and actively collaborate to achieve completion. The 'mutual trust and co-operation' obligation under clause 10 of both NEC3 and NEC4 contracts lies at the core of the NEC contract suite. Initially introduced in the 1995 NEC second edition after the Latham Report (1994), the so-called 'clause 10 duty' has survived two major reviews yet its scope remains undefined. This article aims to explore the potential meanings and scope of the clause 10 duty.

Citation

MANTE, J. 2023. Exploring the essence and extent of 'mutual trust and co-operation'. [Blog post]. Posted on NEC: news [online], 23 October 2023. Available from: https://www.neccontract.com/news/exploring-the-essence-and-extent-of-mutual-trust-and-co-operation

• Digital Artefact Type: Blog Post
• Acceptance Date: Jul 21, 2023
• Online Publication Date: Sep 1, 2023
• Publication Date: Oct 23, 2023
• Deposit Date: Nov 13, 2023
• Publicly Available Date: Sep 2, 2024
• Publisher: Thomas Telford
• Keywords: NEC Contract; Mutual trust; Cooperation
• Public URL: https://rgu-repository.worktribe.com/output/2146439
• External URL: https://web.archive.org/web/20231128133551/https://www.neccontract.com/news/exploring-the-essence-and-extent-of-mutual-trust-and-co-operation