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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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NEC ECC - Final Assessment

Is there a time scale for a contractor to respond to a PM final assessment which considers the completed works minus delay damages etc ?  This is for an NEC3 contract.

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NEC ECC: Option D - Defect Correct Period cannot be complied with

One of the boilers installed by the Contractor for a new hotel under Option D contract has stopped working. Having discussed the matter with the Contractor, it is established that the 4 week defect...

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NEC ECC: X7 - Levying of Delay Damages

If option X7 forms part of the contract, can an employer/contractor levy delay damages at the end of a project/contract without prior notification/warning of their intention to do so?

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Answered: NEC ECC: When should a time element be included in a CE quotation?

The Contractor is obliged to obey an instruction from the PM which is given in accordance with the contract, which doesn't include an instruction to implement acceleration, notwithstanding the...

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Answered: NEC3 ECC Option X7

Whilst it isn't a requirement of NEC3 many parties still like commercial conclusivity at the end of the contract to wrap up all outstanding matters in a final account settlement agreement that states...

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Answered: NEC TSC: Option A with option X19 - Instruction changing a Task Order

X19.4 is the right answer however once the Task Order is issued the work involved is added to the Service Information so technically if the Service Manager is only wanting to change the work then...

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Answered: NEC ECC: CECA rates for Plant hired for a Compensation Event

Assuming you are using the Shorter Schedule of Cost Components then your understanding is correct, the CECA rates are used adjusted by the % in the Contract Data. Item 22 only comes into play when the...

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Answered: NEC ECC: Z Clause creates ambiguity

You should notify the PM of "an ambiguity or inconsistency in or between the documents which are part of this contract" under clause 17.1 and PM should give an instruction resolving which might entitle...

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Answered: NEC ECC: When should a time element be included in a CE quotation?

A Contractor should act competently and promptly to a compensation event (written) and also mitigate the effects practically (unwritten). If it is practically easy to get additional resources and work...

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NEC ECC: Can I ask to see the Subcontractor rates when assessing a CE?

When assessing a CE, can I ask to see the Main Contractors, subcontractor contract to ensure the rates are as agreed between the two parties and to ensure that the main contractor isn't inflating the...

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NEC TSC: Rate banding

I am working on a term service maintenance contract and i have got the query for rate banding. Normally the agreed price is based on different banding ie 0-50m, 50-100 etc., but the Client challenged...

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Answered: NEC ECC: Risk Allowance

No the quotation should be assessed based on a reasonable forecast in accordance with clause 63.1. That forecast should include risk which has a significant chance of occurring and is the Contractor...

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Answered: Prices and Completion Date

If the PM fails to respond to a quotation within the contractual timescales, the Contractor may notify in writing of their lack of response(62.6). If they fail to respond to the reminder for a further...

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Answered: NEC ECC: What happens to Prices and Completion Date if PM fails to...

If the PM fails to respond to a quotation within the contractual timescales, the Contractor may notify in writing of their lack of response(62.6). If they fail to respond to the reminder for a further...

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Answered: NEC ECC: Can I ask to see the Subcontractor rates when assessing a CE?

Well, you can ask, but whether the Contractor needs to show depends: Under NEC3 ECC, options A & B, the answer is 'No' as the Contractor is paid according to the Shorter Schedule of Cost Components...

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NEC ECC: Tender Works Information vs Contract Works Information

We priced our work based on the tender Works Information given. When a contract was issued the contract Works Information included a requirement for 3rd party approvals to be shown on our programmes....

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NEC ECC: Specifying a Start Date in CD Part 1

NEC3 - specified a starting date in Contract Data Part One, but this date was not met due to the time it took to award the contract A new starting date was agreed after award. The appointed Contractor...

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Answered: NEC ECC: Inclusion of Compensation Events - Option A

Under NEC3 ECC main option A, the amount due to the Contractor is the Price for Work Done to Date (PWDD) which is defined as completed activities which are without Defects etc. If an amount is included...

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Answered: NEC ECC: Specifying a Start Date in CD Part 1

The starting date isn’t mentioned in any of the compensation events therefore the fact that it didn’t happen is not in itself a CE. The starting date only means programme and payment procedures...

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Answered: NEC TSC: Rate banding

To be able to answer the question you need to understand how the Price List was put together and any relevant Z clauses. Use of a standard method of measurement is not dealt with in the TSC therefore...

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