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Channel: ReachBack by BuiltIntelligence - Recent questions and answers in NEC3 and NEC4 Contracts
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NEC3 ECC: Best price for Equipment & Materials

Re Option E (Option C & D for CE quotes); How does the Employer ensure best price is secured for Equipment & Materials when more Fee can be earned by the Contractor the more expensively he...

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Answered: NEC3 ECS: Removing work and giving it to someone else

A really interesting question. First off, I am not sure that the right remedy here really is a CE (despite the contract saying that CEs are the only remedy that is not necessarily the case)....

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NEC3 ECC: Under Option D, is the Employer required to pay as defined cost the...

Defined cost is the amount of payment due to subcon for work which is subcontracted.  The definition of work is anything that involves mental or physical effort to achieve a purpose.  In the SoCC, it...

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NEC3 ECC: Assessment periods after termination notified

Can the Contractor submit an assessment in accordance with the assessment schedule (as included with the contract) after termination or does the Project Manager delay the assessment until 13 weeks from...

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Answered: NEC3 ECC: Terminal float on cl32 revised proggramme

Terminal float is where planned Completion is in advance of the Completion Date. If the Contractor has used this up due to their own risk items then that is their gift. If you have an Accepted...

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Answered: NEC3 ECC: Weather Delay

I might be as bold as to say you are both wrong. You say that two days with in the month was a 1:10 event. You then assess the impact of that CE. Two days of rain does not equal two day movement in...

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Answered: NEC3 ECC: How is the People Overhead Fee Applied

If you do a search within Reachback using "people overhead" or "direct fee percentage" you will find several answers to this questions or similar ones that will give you more detailed answers. However,...

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Can secondary Option Clause X11 be included in the NEC3 PSC when operating...

Can secondary Option Clause X11 (termination) be selected within the contract data of a NEC3 PSC call off contract when operating under Option E Cost reimbursable? If so, and in the event the employer...

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NEC3 ECC: Assessing Compensation Events

We are currently using an Option D Contract. We are currently in the process of assessing a Compensation Event due to revised design which leads to reduction in quantities. If Parties did not reach...

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NEC3 ECC: Change in quantity under option D

Say the Original BOQ for Pile Test  500 ea @ £100, then qty later revised /reduce (due to redesign by owner) to 300 ea, with 100 ea already done @ £50 (actual cost each) and 200  not yet done.  What is...

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NEC3 ECC: Option A itemised Activity Schedule - can I raise an EW if I feel...

The contractor is working on an NEC Option A with an itemised BOQ for the works. One of the items is carriageway patching. The tender drawing show 500m2 of patching and we visited site at tender stage...

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Answered: NEC3 ECC: Can delay damages be applied to Key Dates?

No - delay damages under X7 are applicable to sectional completions if you have them (under X5) and the overall Completion Date. Key Dates are separate and if you have them identified within contract...

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Answered: NEC3 ECC: Option C - no X1 but CE's Extend Programme over Financial...

Not really sure what the problem is here. The Contractor put forward their target price without X1 so they have taken the risk in inflation - but under option C even this is a shared risk as they will...

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Answered: NEC3 ECC: Payment of prelims beyond Planned Completion but within...

Few things to point out here. Whilst not wanting to seem pedantic it is quite important to use the correct terminology. "Planned Completion" is where the Contractor plans to achieve the definition of...

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Answered: NEC3 ECC: Option A itemised Activity Schedule - can I raise an EW...

If the area marked out is greater then that shown on the drawings then there has been a changed in the Works Information and it is a CE. Whether the original area billed was equal to the area shown on...

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NEC3 ECC: Can an Employer withhold monies for defective works from an...

Is an Employer entitled to retrospectively withhold monies previously certified and paid within an Activity Schedule when they carry out an assessment due on Termination for Convenience? Would they be...

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NEC3 ECC: Sub Contract Fee Percenatge

Can somebody clarify the amounts to be included within defined cost where works are subcontracted. Would this include the subcontractors fee percentage from the ECS (subcontract form) or is this fee...

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NEC3 ECC: Can delay damages that are 'generally' £x per day be enforced

In CD pt 1 the delay damages have been stated as 'generally £x per day unless otherwise noted'. No specific damages are given Are the delay damages enforceable?

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Answered: NEC3 ECC: Can you request an early warning meeting, as per clause...

Here is an example of where 13.7 can be taken FAR too literally. It is there for good reason - don't give four separate early warnings or instructions on the same piece of paper that could/need to be...

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Answered: NEC3 ECC: Consequential effects of missing a key date

First of all - Completion Date should not be a key date. They are different thing. Completion Date is the date the Employer requires the defined works in "Completion" to be achieved by. These would be...

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