NEC ECC: Termination for any reason
Clause 90.1 of the NEC 3 ECC Contact allows an Employer to terminate for any reason. Are there any requirements that they must do so in good faith etc? Or can it be at will for for any reason at all...
View ArticleAnswered: NEC ECC: Can the client limit payment to agreed target value only...
The standard form operates on the basis that, in simple terms, the Contractor is paid PWDD less disallowed cost until Completion when an initial assessment of the Contractor’s share is carried out and...
View ArticleAnswered: NEC ECC: If an area of the Site physically changes post award of...
Very clearly the intent of the Client/Employer to transfer this risk to the Contractor. By deleting these clauses the Contractor has no way of notifying this as a compensation event and therefore this...
View ArticleNEC ECC: Can the client limit payment to agreed target value only on option C.
We are working on an NEC3 Option C with numerous CEQ's submitted but most not agreed. The Client have implied that they are behind but equally, they have been advised by us that they are 'out of time'....
View ArticleNEC ECC: If an area of the Site physically changes post award of the contract...
If an area of the Site physically changes post award of the contract who carries the risk? Cl. 60.1(12), 60.2 & 60.3 are all removed from the contract.
View ArticleAnswered: NEC ECS: Risk allocation with Contractor provided service
It doesn't help that there is no definition of what 'setting out' means in your contract, but I would suggest that it refers to providing a marked reference of the design on Site to facilitate the...
View ArticleAnswered: NEC ECC: Does the Supervisor role need to be independent to the...
It can be one and the same or different. The choice is personal preference.
View ArticleAnswered: NEC ECC: Is a quotation still required following agreement on a cl....
Thanks Jon(and thanks for pointing out) - yes I need to caveat my answer which I slightly rushed. It also depends now if you are on NEC3 or NEC4. NEC3 first of all. It depends if this is an Employer...
View ArticleAnswered: NEC ECC: Works Information and assumptions made at tender
Usually if the Contractor submits any form of proposal with their tender it would be entered in Contract Data Part 2 as Works Information for the Contractor's design. Any contract condition amendments...
View ArticleAnswered: NEC ECS: Subcontract vs Purchase Order
Unless the Purchase Order has been issued as, and is stated as, a supplementary agreement to the subcontract then it does not supersede the contract and has no bearing on the subcontract terms and...
View ArticleAnswered: NEC ECS: The PC cannot provide safe access/egress to the site due...
This is often a disputed issue as wind is not considered as one of the 'standard' weather measurements for most projects. That said, however, the likely reason why you didn't work was due to not being...
View ArticleAnswered: NEC ECC: In a CE, is the full cost of the material recoverable or...
Disallowed cost does not apply under Option B. It is more relevant to the definition of Defined Cost under target cost contracts. Under Option B, Defined Cost is the cost of the components in the...
View ArticleAnswered: NEC ECSC: Is there such thing as loss of profit?
To answer your query, the Defined Cost is a defined term and defined in 11.2 (5). The definition has no heading for 'Defined Cost of loss of Profit', so this is not an allowable cost. However, the...
View ArticleNEC ECC: conflict in Works Information
There is a minor conflict for an item in the Works Information where one document states a completely different (and lower quality) product than all the rest of the Works Information. The Bill...
View ArticleAnswered: NEC ECC: Who is culpable for the programme delay where free issue...
I assume this is NEC4 because of the use of the word 'Client'. The 'preferred' reference is a red-herring as the answer is it would depend upon what is in the subcontract between the Contractor and...
View ArticleAnswered: NEC ECC: Quality Management 40.2
Not sure if it would be wise to do this just because the Contractor has no Quality Management plan, but certainly would think it is justified if the Contractor is doing poor quality work (partly) as a...
View ArticleAnswered: NEC ECC: Temporary change to the working area
Neil, it may be worth considering capture the agreement in a supplemental agreement (or a DoV) since I presume the Client may want to impose some form of damage if the area is not handed back when...
View ArticleAnswered: NEC ECC: Option B - Deleted BOQ Item Valuation
If the new road xing is a revised detail for the original xing then yes in principle the PM is right that the CE should be for the change in Defined Cost + Fee. On that basis if you would have lost...
View ArticleAnswered: NEC ECC - Referencing other documents from Contract Data Part One
My view is that if the 'boundaries of the site' were defined by reference to a drawing, then regardless of whether that drawing was subsequently changed by the PM as an instruction changing the Works...
View ArticleAnswered: NEC ECC: Payment for Deposit Charges
The answer would depend on whether you were using NEC3 or NEC4 although the principle would stay the same. Under NEC3, Subcontractors are not a listed cost in the Schedule of Cost Components, but the...
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