Answered: NEC3 ECC: Does the PM pay for a defect repair on sub-contracted work?
To add to Dave's answer if the subcontractor is under option A (but Contractor under option C with Employer) then they should not be paid to correct a defect, so the Contractor should not be paying out...
View ArticleAnswered: NEC3 ECC: PMI to Proceed With The Works
I assume that you mean a compensation event under 61.1(1). The CE would not alter the requirements of clause 21 unless expressly stated to do so or the CE itself contained a revision to the...
View ArticleAnswered: NEC3 ECC: Can two persons be named as Supervisor and be given...
There are no real restrictions here as to what or to who they delegate their powers down to. Obviously they will act on their behalf so they should be confident that they are experienced and capable...
View ArticleAnswered: NEC3 ECC: Does anyone know of the change history between the ECSC...
This contract (and all others for that matter) in the first few pages of the book have a page that shows the amendments that have been made since the June 2005 edition. In the ECSC this is the page...
View ArticleNEC3 ECC: Liability for defects
The Contractor is responsible for design on this particular project. Defects in welding have been raised by the Client and defects in poor choice of material have also been raised for their...
View ArticleAnswered: NEC3 ECSC: Testing requirements
The problem they had when trying to create a short contract was making it shorter. I think most of the clauses in the ECC are good and useful so it is a struggle to simplify the contract without losing...
View ArticleNEC3 ECC: Negative Risk in a Negative Compensation Event?
We are assessing a de-scope of works which gives rise to a neagtive compensation event. With additional works - as the client did not like the figures the risk register was showing - we have agreed a...
View ArticleAnswered: NEC3 ECC: How are interim assessments handled where the quantity in...
Antony I presume that you are on an Option B. 1. the assessment of PWDD is the quantity of work completed multiplied by the bill rate. The provisions of clause 60.4 do not apply until the item of work...
View ArticleAnswered: When quoting for a Compensation Event arisen from an instruction to...
The assessment of the CE should be, in simple terms, the difference between forecast Defined Cost + Fee had the event not occurred v the forecast Defined Cost + Fee including the CE. Therefore if the...
View ArticleAnswered: NEC3 ECC: Best price for Equipment & Materials
As you move through the options (i.e. from A-E) as well as financial risk to the Employer is increasing, so is the level of management input required from the Employer. You have to be involved more in...
View ArticleAnswered: NEC3 ECC: Late issue of Defects Certificate
The only remedy would be to adjudicate on this matter if you believe the Supervisor is in breach. When the Supervisor eventually does issue the certificate it should make clear the date on which it...
View ArticleAnswered: NEC3 ECC: Is defined cost a cost excluding mark-up?
Defined Cost are costs listed in the Schedule of Cost Components and payments due to a Subcontractor for works which are subcontracted. This refers to actual costs incurred by the Contractor in...
View ArticleAnswered: NEC3 ECC: Breakdown of Direct Fee percentages
If you have not yet signed a contract then you are not "obliged" to show anything. I don't think you have to show this, but if they are asking and you refuse they will be wondering what you have to...
View ArticleNEC3 ECC: If the Employer takes over the Works, is it (subject to a defects...
We have an upcoming scenario in which the Works are going to be taken over by the Employer but there are outstanding works still to be performed. Under clause 35.3, the Project Manager is obliged to...
View ArticleAnswered: NEC3 ECC: How is concurrent delay treated under NEC option D?
Broadly speaking there is no such thing as "concurrency" under any of the ECC contracts. Whilst I can dream up a situation where two events happen at exactly the same time, in most cases one of the...
View ArticleAnswered: NEC3 ECC: Under Option D, is the Employer required to pay as...
Under option D any efficiency the Contractor can make will benefit both the Contractor and the Employer in terms of pain/gain (depending on the split. Therefore the Contractor should let subcontracts...
View ArticleNEC3 ECC: Recovery of monies from Subcontractor
How would you recover costs for materials that a subcontractor should have bought but didnt? Would you recover through a compensation event?
View ArticleAnswered: NEC3 ECC: Which is the most important milestone in an NEC3...
Most important milestone in programme is planned Completion. If this is beyond the Completion Date then the Contractor is liable to pay Delay Damages. If ever there is a compensation event, the test is...
View ArticleAnswered: NEC3 ECC: Is documentation after or before Completion?
Terminal float is the difference between planned Completion and Completion Date. It depends therefore on your definition of Completion. If it is a requirement to have your documentation in place in...
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