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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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NEC3 ECC: What if there has never been an accepted clause 31 programme?

There was a programme submitted at tender.  There have been programmes submitted each month to a previous PM who has never instructed that they have or have not been approved. The new PM is looking for...

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Answered: NEC3 ECC: What happens if the Employer has terminated the contract...

Let's presume that the PM has issued a termination certificate under clause 90.1, which means that the Contractor then does no further work under clause 90.5. So even without the instruction under P2...

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NEC3 ECC: Sett off costs for hired plant failures

A sub-contract agreement was put in place to supply labour and plant to undertake the installation of support steel work. however the mechanical plant (mast climber) failed on numerous occasions...

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NEC3 ECSC: Payment of CE

I have an issue where our client is waiting for their end client to assess a CE which originated from us as a Contractor. This CE resulted from an instruction to complete additional works and has not...

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Answered: NEC3 ECC: Payment of risk under a target cost contract

No - such risk would not generally be a disallowed cost under a target cost contract or cost reimbursable contract. As with anything that is questioned "should this be paid" the only elements that can...

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NEC3 ECC: Should defects be included as additional activities in to a...

As the project is coming closer to completion defects are being realised. At what point should this additional work appear on the programme? Also, would the additional activities be linked to the...

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Answered: NEC3 ECC: Is the Contractor required to procure Professional...

In the first instance the costs of any insurance policy you provide is deemed included within the Fee and therefore (unless there is a specific contract amendment) then Employer does not have to pay it...

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Answered: X1 - Price Adjustment for Inflation - Can you offer advice on a cap...

In light of today's decision to come out of the EU I doubt you are the only person thinking about how to protect yourself from dramatic increases in the rate of inflation. The RICS were already...

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NEC3 PSC: What method exists for withdrawing a Compansation Event

A Compensation Event has been issued and a resolution has now been agreed which negates the need for the CE or quotation. There are no cost or time implications. What method exists for the Employer to...

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NEC3 ECC: Are these elements to be included in a CE quote?

NEC Option C being used for main contractor, sub-contractor engaged by Contractor on NEC Option B Two parts to my question, please: 1. If I agree to prolongation as part of a CE, then the prolongation...

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NEC3 ECC: Assessing extention of time entitlement from "incorrect" programme

We have an accepted programme with incorrect logic that contains a number of access dates. These access dates have now been delayed When accessing the delay entitlement do we just amend the access...

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NEC3 ECC: What "people overhead" percentage would be typical?

What is a typical range of people overhead percentages for an NEC3 ECC Option A project? The project is a £3.5M refurbishment in London.

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NEC3 ECC: Assessment of a de-scope of works (from PMI)

Under a ECC Option C contract, the PM decides with a PMI to de-scope part of the works that were priced at tender stage, which is essentially the Contractor's budget to build for that work. Under the...

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Answered: NEC3 ECC: Are these elements to be included in a CE quote?

1) The Contractor is entitled to be paid for preparing the quotation. Remember though that in Option C he'll be paid the Defined Cost anyway, and all we're really talking about is the amount the target...

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NEC3 ECC: When do you issue a pay less notice to a Subcontractor under a NEC...

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Answered: NEC3 ECC: Clause 14.8 ; should we apply interest from day 57 and is...

Clause 14.8 is not a standard contract clause so not sure if you mean another clause or if this is an amendment (Z clause) to your contract. You might want to re-ask the question highlighting the...

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Answered: NEC3 ECC: Under NEC 3 Opt B, when pricing a CE for an event that...

You assess the disruption for option B the same way that you would assess under any option. You assess the compensation event against the last Accepted Programme and any impact is assessed as part of...

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NEC3 ECC: Employer Design Liability and timeliness of EW's

Scenario – The Works Information identified the use of a lightweight density concrete to construct a new arch saddle for an accommodation bridge. The concrete mix design specified in the Works...

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Answered: NEC3 ECSC: Payment of CE

Clause 62.6 states that if you have submitted a quotation to the Project Manager and this has not been responded to, then you must notify them of their failure to reply. If they do not respond to your...

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Answered: NEC3 PSC: What method exists for withdrawing a Compansation Event

For these type of CE's I have dealt with, they are implemented at zero cost and zero time. I have not found any contractual clause that states when a Compensation event is accepted but then decided...

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