Sectors - Commercial

Virgin Media Chose NEC4 for Cabling Works

Virgin Media has chosen NEC4 contracts to deliver over £2.5 billion of cable installation and maintenance works over the next seven years.

An initial segment of 18 NEC4 Engineering and Construction Contract (ECC) Option A (priced with activity schedule and Option B (priced contract with bill of quantities) contracts were let last summer for cable work infill projects, which range in value from £150,000 to £12 million. The NEC-produced infill build programme is to continue at a rate of around £200 million per year.

Along with this, nine NEC4 Term Service Contract (TSC) Options A (priced contract with price list), C (target contract with price list) and E (cost reimbursement) were let in March 2020 for smaller regional cable installation and maintenance works, which are worth around a total of £250 million a year.

The five-year contracts started in April and can be extended by two years.

The NEC-procured works programme involves extending, upgrading and maintaining the company’s 186,000 kilometres of local cable distribution network, which currently passes 16 million UK and Irish homes and businesses.

In addition to expanding the network to reach more homes, other works delivered via the programme include installing new and upgraded cabinets, replacing batteries, fixing faulty connections, undertaking emergency restorations and diverting services.

Commercial Director Chris Matthews said: “We chose NEC contracts to replace the heavily amended ICE contracts we used to use. NEC will help us to drive greater integration, trust and sharing of risk, which in turn will deliver better value for our customers, shareholders and supply chain.

“‘We nevertheless organised an extensive NEC training programme for staff and suppliers together with our commercial consultant Arcadis, legal adviser Ashurst and contract management system provider Cema.”

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