Answered: NEC ECC: Impact of a compensation event
In principle 'Yes' I would provided the Contractor is acting in accordance with clause 63.7 of the NEC3 Engineering & Construction Contract - I assume it is NEC3 and not 4 by your use of the word...
View ArticleAnswered: NEC ECC: What is the methodology that the Contractor goes through...
Yes you are correct that you use the SSCC to build up the cost of the compensation event with option B, although by agreement of both Parties rates or lump sums from the B of Q may be used (63.2) on a...
View ArticleAnswered: NEC ECS: What action to take when a subcontractors defect creates...
Firstly you should have notified the Defect to Subcontractor 1 and advised them that the subcontract works would not be certified as Complete until the Defect is corrected which would usually leave...
View ArticleAnswered: NEC ECC: Change from main Option B to E due to uncertainty over...
It is possible to change the main Option but you would need to enter into a formal deed of variation for it to have effect. The effects of CEs in Option E are different to Option B, when implemented an...
View ArticleAnswered: NEC ECC: Option A - change to a key date
Yes. If you will not meet a Key Date due to a reason that is a valid compensation event then as part of the quote not only will you be assessing the date to which the Key Date should be moved to (and...
View ArticleAnswered: NEC ECS - Different options for correcting a Subcontractor defect
I would firstly discuss the options with Employer, PM, Supervisor and Subcontractor in the context of a risk reduction meeting (assuming NEC3 ECS) as you are concerned that the Subcontractor's proposal...
View ArticleNEC ECS: Costs of rates included under NEC3 options C and E, CD2
How can I include costs for staff travel time ( subcontractors), and other travel time for commissioning and special labour resources, under CD2? Further, can I include a procurement list of plant/...
View ArticleNEC ECC: Applying People Overhead Fee to Sub-Contractors within a...
A Contractor, working under NEC 3 Option A, has issued quotations that include sub-contractor costs to which he has applied his people overhead fee and then direct fee. Is people overhead fee...
View ArticleNEC ECC: Severance cost for People incurred under SSCC (during Covid-19 period)
The SSCC at 12(f) includes "severance related to work on this contract." Where an employees work has come to an end, either because; (a) the work has finished on the project and the business has no...
View ArticleAnswered: NEC ECC: Severance cost for People incurred under SSCC (during...
If 60.1(19) has come into affect, then I see no reason why not BUT the costs would be proportional to the time worked on the contract. E.g. if the person has been working for the company for 10 years...
View ArticleAnswered: Any comments on the options for relief and deed of variation...
It really would depend on what the deed of variation said as you are effectively, by agreement, altering the conditions of contract.
View ArticleAnswered: Impact of CE following Contractor Delay on the Completion Date
Taken in isolation, by the criteria in clause 63.3 of NEC3 or the 63.5 in NEC4, it should not add anything on to the Completion Date as planned Completion is not delayed. However, the Contractor's risk...
View ArticleAnswered: NEC ECC: Any comments on the options for relief and deed of...
It really would depend on what the deed of variation said as you are effectively, by agreement, altering the conditions of contract.
View ArticleAnswered: NEC ECC: Impact of CE following Contractor Delay on the Completion...
Taken in isolation, by the criteria in clause 63.3 of NEC3 or the 63.5 in NEC4, it should not add anything on to the Completion Date as planned Completion is not delayed. However, the Contractor's risk...
View ArticleAnswered: NEC ECC: Employers Design incorrect - is this a Defect?
A Defect, with a capital 'D', is defined in the contract as a part of the works which is not in accordance with the Works Information and the Works Information describes what the Contractor has to, not...
View ArticleAnswered: NEC ECC: Introducing a damages free time period due to Covid-19 delays
The easiest way would just be to write a Deed of Variation which says that instead of the Completion Date being where it is currently [state date], it is put back by 18 weeks to [state new date] and...
View ArticleAnswered: NEC ECC: Option B - pricing compensation event for similar work
Yes, it is. This is because even thought the work might be identical, the rates don't take into account the delay and sometimes disruption cost. Alternatively, the game used to be to spot the...
View ArticleAnswered: NEC ECC: Applying People Overhead Fee to Sub-Contractors within a...
For NEC3 Option A the default assessment of compensation events is Defined Cost + Fee. Clause 11.2(22) defines Defined Cost is based on the Shorter Schedule of Cost Components (whether work is...
View ArticleAnswered: NEC ECC: Difference between percentages added to People and other...
I assume you are talking NEC3 here, as it is a different answer for NEC4. Under NEC3 there are different percentage elements applied to different parts of the schedule of cost components. For the...
View ArticleAnswered: NEC ECSC: Short contract percentages at tender stage?
These two percentages are there to cover and - once tendered and accepted - avoid any argument over what the contribution to your profit and off Site overheads is due to compensation events i.e. your...
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