Answered: NEC ECC: Implementing the impact programme before the costs of CE
It is not actually 61.4 that the PMI is issued under. This is more the response to a notified CE. Under clause 61.1, if the PM gives an instruction that is a change to the Works Information, then at...
View ArticleAnswered: NEC ECC: Mistake on employers Activity Schedule.
Under option A, the contract assumes that the Contractor produces the activity schedule and any errors in that schedule i.e. they do not price something that was within the Works Information (or Scope...
View ArticleAnswered: NEC ECC: Contractor has installed a lower performance item this was...
No this would not be a compensation event, although it is unusual they will accept that lower quality item without a financial saving. The Contractor can propose not to correct a defect (as this lower...
View ArticleNEC ECC: Amending a rate in BOQ due to inconsistency between BOQ and Works...
An interesting question for some of the advanced users of NEC3. The contract is NEC3 Option B It is common cause between the PM and contractor that a compensation event has arisen due to the following...
View ArticleAnswered: NEC ECC: More than one defects date?
It is possible and I have both come across this and been asked to do this by Clients in the contracts that I have prepared, although it does take some minor redrafting of the Contract Data text. If the...
View ArticleNEC ECC: Contractor has installed a lower performance item this was accepted...
A Contractor has installed a lower performance item which has been accepted by the PM, is this a compensation event?
View ArticleAnswered: NEC ECC: Amending a rate in BOQ due to inconsistency between BOQ...
Cameron - sorry but I don't think it is as simple as proving that they had not priced them. The BofQ rates are not used to assess compensation events. What would the difference be if they forgot to...
View ArticleAnswered: NEC ECC: Employer activity schedule
It is not really a case of what disadvantages are there in the Employer stating activities on the activity schedule, but more a case of why would they want or need to do it? Under option A the activity...
View ArticleAnswered: NEC ECC: Who owns Equipment
The contract should have made it clear what happens to Equipment that the Employer has paid for, as normally they would want to keep it if they have paid for it and it is still functional and worth...
View ArticleAnswered: NEC4 - Covid - Main Option C - Are we entitled to deduct the...
Your reasoning is correct in in both respects as clause 52.1 applies both to the assessment of compensation events under all options and reimbursement of Defined Costs for doing all the works under...
View ArticleNEC ECC: Notification of a Compensation Event - when is it accepted?
We have raised a notification of a compensation event. Â The Project Manager did not respond in the timeframe. Â I then reminded the PM that he hasn't responded. Â The PM still did not respond to this...
View ArticleAnswered: NEC4 Option C - when should the contractor submit the final...
The NEC4C Contract says that the PM issues it 4 weeks after the Supervisor issues the Defects Certificate. It doesn't say if the Contractor is required to submit an application but if there is no...
View ArticleAnswered: NEC ECC: Employer termination
Mike below is absolutely right that 'financial restrictions' is not a direct reason to terminate. It would, however, come under "A reason other than R1 - R21' as per the table in clause 90.2 from which...
View ArticleAnswered: NEC ECC: Termination of works by Employer Option A (NEC3)
The Project Manager determines the amount due in accordance with the termination table in Clause 90.2, and certifies payment within 13 weeks of termination, as required by Clause 90.3.
View ArticleAnswered: NEC ECS: Under NEC3 ECS, can a Contractor communicate change to a...
I think this turns on the phraseology used in that response to your TQ. If it can be 'reasonably' construed as an instruction from the Contractor to do the work as per the new specification. But what...
View ArticleNEC TSC: Which NEC3 Option for Firm Price and KPIs linked to variable...
I have an existing FM (hard) contract that needs to be tendered under TSC NEC3. Currently it is under a non NEC3 bespoke contract. My question is which NEC3 pricing option(s) if any can I use which can...
View ArticleAnswered: NEC ECC: Change of CECA Rates When Pricing a Initial And Revised...
It really depends upon what the entry was in the Contract Data Part Two: if the Contractor referenced the 2011 list and said something like "or as replaced by any updated list", then the...
View ArticleAnswered: NEC3 ECC Option A - Unistructed works carried out by the Contractor
Under the contract, only the Project Manager can instruct a change to the Work Information or Scope (under NEC4), unless an individual is delegated authority to act on the PM's behalf. So...
View ArticleAnswered: NEC ECC: Should a reference to compliance with CDM Regulations be...
Lawyers seem to prefer the option Z clauses, but they would wouldn't they! I see no reason why it can't be in the Scope though and, if being the Principle Consultant is part of their professional...
View ArticleAnswered: NEC ECC: Option A - Can the Employer define quantities as this is...
It is allowed, but I would suggest that an option A strategy will either result in very high prices; no-bids or an artificially low bid which will cause all sorts of trouble if you enter into it e.g....
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