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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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NEC ECS: Terminal Float pricing?

As part of an NEC3 ECS Main Option A. The contract has been awarded and executed by both parties 6 weeks before the starting date Under 60.1 (1) The Subcontractor has been instructed to start works 4...

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Answered: NEC ECC: Amount to withhold for defects and when to charge...

You don't say whether Completion has been certified, this is a key factor in determining the answer to your question.

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NEC ECC: What is WAO applied to

Under an ECC3 option C Defined Cost is the cost of the components of the SCC with SCC 13 (a) & (b) allowing the contractor to be entitled to claim for T&S if they are required to provide the...

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NEC ECC: is justification required along with a notification of a 60.1(19) event

A Contractor has notified via cl. 61.3 of his belief of a cl. 60.1(19) event occurring. The event has not stopped the works outright so therefore cannot meet the test of the first bullet of 60.1(19)....

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NEC ECC: Cl 60.1(19) - Is the Contractor requires to provide proof with a...

If a Contractor notifies via cl. 61.3 of his belief that a cl. 60.1(19) event has occurred, is he required to provide evidence with the notification? Ignore for now the other 3 bullets points of cl....

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NEC ECC: Can disallowed costs be calculated by the PM

On an NEC3 ECC Option C contract can the PM only disallow costs that have actually been claimed? The situation is as follows: the Contractor has wrongly undertaken certain works outside the boundaries...

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Answered: NEC ECC: Incorporating an extra over cost identified at tender into...

There are several approaches to this but my suggestion (based on you having not yet entered into contract) would be to introduce a Z clause to capture the change in the Prices should the potential...

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Answered: NEC ECC: Option C; D&B. CE or not?

It certainly sounds to be a CE. If the Client’s WI did not specify a type of finish required, then the change in WI to introduce the required finish is a change in the WI. The change will not be due to...

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Answered: NEC ECC: What is WAO applied to

Under NEC3 ECC Option C, Defined Cost is defined at clause 11.2 (23) and essentially includes; - amounts due to Subcontractors, - cost of the components in the Schedule of Cost Components. Clause 52.1...

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Answered: NEC ECC: Key Person change

They should have offered for acceptance the name of the alternative person before they appointed them. You would have then had to accept or not accept the alternative person. A reason for not accepting...

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Answered: NEC ECC: Can disallowed costs be calculated by the PM

The definition of Disallowed Cost is reasonably specific so firstly you would need to decide if these costs fall into one of the stated bullet points, possibly Plant and Materials and resources not...

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Answered: NEC ECC: Cl 60.1(19) - Is the Contractor requires to provide proof...

Under clause 60.1 (19), the matter is not just about assessing a programme delay but that the occurrence of a 'prevention event' (see clause 19) stops the works being completed, either at all or by the...

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Answered: NEC ECSC: is W1 a default option outside UK?

I assume you are referring to the Engineering and Construction Subcontract (ECS) rather than the Engineering and Construction Short Contract (ECSC). Although the W Options are perceived to be optional,...

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Answered: NEC ECC: Two contractors on one site

yes, see 11.2(10) each of the contractors is an Other in the context of the respective contracts

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Answered: NEC ECC: How does NEC3/4 deal with the recovery of IT costs as...

The high-level answer is 'No' as under under both NEC3 and NEC4, these costs are incurred, as you say, outside the Working Areas. Further under NEC3, there is a reasonable argument for saying  that the...

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Answered: NEC ECC: Time related costs

Is this NEC3 or NEC4 as there is a slight tweak in wording which may be relevant ?

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NEC3 Supply Contract Can you claim for plant/equipment Balance Sheet assets...

A Supplier is providing goods and services under the NEC3 Supply Contract. The supply requires the use of significant plant and equipment. The Supplier owns this plant and equipment which it has fully...

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Answered: NEC4 ECC - inconsistency between Contract Data and a Z Clause

If a compensation event occurs due to an ambiguity within the contract, then it is assessed in accordance with 63.8 which says it is assessed in favour of the party which did not create the ambiguity.

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NEC ECSC: is W1 a default option outside UK?

Contract Data on an NEC3 ECSC has been left blank. The main NEC3 ECC applies W1 for dispute resolution. There is no "flowdown" clause. W2 not applicable in this jurisdiction. Does W1 apply by default...

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Answered: NEC4 ECC - inconsistency between Contract Data and a Z Clause

Under NEC4, the first contract level of dispute resolution is by the senior management representative process. This can include taking unbiased legal opinion to inform the resolution.

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