Answered: NEC ECC - Z clause that means working around existing services is...
The compensation event process is : 1. Notification - Contractor notifies what they believe to be a CE justifying why it is (in accordance with 60.1) one. Project Manager responds with either no they...
View ArticleAnswered: NEC ECC: Option A: Instruction 11.2(19)
Firstly, it is not clear, from the wording of the email, what the intention of the 'equipment list' is. As the matter is considered to be an early warning by the Project Manager then hopefully you can...
View ArticleAnswered: NEC ECC: Switch date for assessing time in a compensation event
The "switch date" under NEC3 which is actually given the name "dividing date" in NEC4 is either when the Project Manager gave the instruction, or for all other events when the date of the notification...
View ArticleAnswered: NEC ECC: Can PM extend period to assess quote once they have been...
He or she can clearly ask, but the 'asking' is outside of the contract rules as would your acceptance of unless - and this seems a bit over the top - the Parties to the contract i.e. the Employer...
View ArticleAnswered: NEC3 ECC: Fees applied under ECI Stage One - Option C, WAO/H or...
When reimbursing the (Sub)Contractor's Defined Costs under options C, D or E, the full Schedule of Cost Components is always used (and it is the default for assessing compensation events unless it is...
View ArticleAnswered: NEC TSC: Under option A, Option X1 - Adjustment Calculation for...
I would suggest that you apply the PAF calculation that is 'current' at the time you make the assessment, that is when you actually assess the quotation. For example, the payment assessment date may be...
View ArticleAnswered: NEC ECC: Effects of IR35 Legislation
IR35 refers to the Inland Revenue (now HMRC) press release which was issued on 09 March 1999. This outlined plans to clamp down on the growing use of Personal Service Companies (PSC), where the...
View ArticleAnswered: NEC ECC: Option A - Drainage pipes are too narrow and larger drains...
If the Employer's Works Information has specified what pipe widths are to be used and this needs changing for the works to be functional, the Project Manager needs to instruct a change to the Works...
View ArticleAnswered: NEC ECSC: Indemnities Cl.81.2
I stress I am in no way an expert in insurance, but from looking at the clauses it does seem that the Employer is justified as: - they have "costs payable" arising from or in connection with you (not)...
View ArticleNEC ECC: Actual Defined Cost
With regard to for example an NEC 3 Option C Target Cost Contract, what happens to Actual Defined Costs ? : E.G. The Cost of a Construction Manager working for a Contractor via a Limited Company /...
View ArticleNEC ECC: Contractor's Overhead
Under option C, If the Contractor's planner who 4 out of 5 days a week spent in head office but has been charged full time to the project. How does the contract deal with this and what should be paid...
View ArticleAnswered: NEC ECC: Actual Defined Cost
The only reason why the target Prices might increase that I can think of are if one or a number of secondary options are specified. For example: X1: Price adjustment for inflation might, albeit...
View ArticleAnswered: NEC ECC: Contractor's Overhead
Under NEC3 the cost of People is dependent upon the following conditions; - It is incurred in order to Provide the Works, - They are working within the Working Areas. Where the above are not satisfied...
View ArticleAnswered: NEC ECC: Quotation for additional work
Contractor should produce the quotation in line with the schedule of cost components in enough detail that convinces the Project Manager that it is a fair quotation with a sensible amount of risk...
View ArticleAnswered: NEC ECC: Staff cost not allowed in CE assessment due to no change...
I agree with everything Andrew says below and add a comment on the tone of your last para. You are right in what you say, but clause 63.1 allows for CHANGE in Defined Costs plus Fee as a result of the...
View ArticleAnswered: NEC ECC: Agreeing compensation rates
I don't think clause 62.1 is the relevant clause as you seem to be concerned with different ways of assessing the compensation event as opposed to how the work is done. I'll point you at two other...
View ArticleAnswered: NEC ECC: Supervisor missed a defect, what is their liability?
Glenn is absolutely right with regard to the Supervisor and Contractor's liabilities under the NEC3 Engineering and Construction Contract. If the error by the Supervisor was so obvious, then the...
View ArticleAnswered: NEC ECC: Programme update instruction
As this is an obligation under the conditions of contract, it is not a compensation event. Consequently, the Contractor has to 'suck it up' when it comes to the cost of doing this over and above the 4...
View ArticleAnswered: NEC ECC: Error in compensation event quotation and assumption
'Bad weather' is addressed by the appropriate compensation event, which is the subject of your recent similar post , 'NEC ECC: Compensation Event assumption' with a good answer from Glenn. Any...
View ArticleNEC ECC: Is there is a timescale for an Administrator to respond to a PM...
We have an NEC 3 option A contract for which the Contractor went into Administration toward the end of the scheme. The Client had taken over a large part of the building but completion had not been...
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