NEC3 ECC: Ambiguity within "Preambles"
we have a Preambles in which the schedule of rates have been deemed to have taken into account, within the document there is the General Preambles, which states; PG.5 The rates and prices inserted in...
View ArticleNEC3 ECC: Disallowed costs where we have mitigated further costs that would...
Our client has disallowed the following costs from us: Standing Labour and Plant due to weather cancellations. They are stating that as our people were not within the working areas then it is not an...
View ArticleNEC3 ECS: Can cancellation costs be disallowed under Option C?
We have experienced 20+ shift cancellations relating to adverse weather, on all these occasions we have cancelled the shift before our operatives went to site therefore we mitigated the costs and have...
View ArticleAnswered: NEC3 ECC: Application of people overhead to sub-contract labour...
The People cost should be assessed in accordance with item 11 of the Shorter Schedule of Cost Components. The people overhead should then be applied to that amount. Given that the work has been...
View ArticleAnswered: NEC3 TSC: Can an Employer insist on removal of a subcontractor...
The short answer is 'No' as there is no provision in the contract that allows them to do this. The danger, as a main Contractor, is that the Subcontractor is so underperforming as to result in you, as...
View ArticleAnswered: NEC3 SC: Design Liability under a Supply Contract?
Clause 20.1 states :"The Supplier Provides the Goods and Services in accordance with the Goods Information." So the Supplier has to supply in accordance with the Goods Information Clause 14.1 of the...
View ArticleAnswered: NEC3 ECC: Disallowed costs where we have mitigated further costs...
Let us consider People first : The opening sentence of 1. People states :"The following components of the cost of - people who are directly employed by the Contractor and whose normal place of working...
View ArticleAnswered: NEC3 ECC: Can delay damages that are 'generally' £x per day be...
You really need a legal opinion, however I don't see how it can be concluded that damages are £0 or any other amount when £x has been inserted. Clearly the party who drafted the contract had intended...
View ArticleAnswered: NEC3 ECC: can the contractor claim for loss of profit due to...
No, for omitted works it is as per clause 63.1 : change in Prices = effect of compensation event on Defined Cost and resulting Fee. Consequently, the Fee is applied negatively. Not what you wanted to...
View ArticleAnswered: NEC3 ECC: Who pays for preparing "Proposed Instructions"
The general principle of cost of preparing quotations is that for options A&B the cost of preparing the quotations is expressly excluded and therefore Contractors cost. However, if a Contractor is...
View ArticleAnswered: NEC3 PSC: Are Consultant's expenses part of the total of the prices...
You are right. Reasoning : Clause 50.3 states "The amount due is - ... - the amount of the EXPENSES properly spent by the Consultant in Providing the Services and - ... ." The SERVICES above is...
View ArticleAnswered: NEC3 ECC: How is a CE assessed under Option A when only the...
Just to clarify a couple of things. The Schedule of Cost Components (or the Shorter SCC in the case of Option A) is not a pricing document in itself. It makes use of various rates and percentages...
View ArticleNEC3 ECC: Can you reopen a CE once the quotation has been accepted?
CEs for works which have delayed the works were assessed without time implications and agreed. Programmes were submitted and approved which moved the planned completion date beyond the contract...
View ArticleAnswered: NEC3 ECC: Under NEC Option F, is Subcontracted work within the...
Reading the contract as : - the Contractor has tendered 'prices' (in italics) for "work which the Contractor will do himself" (in the Contract Data Part 2); and - a Disallowed Cost "is a payment to a...
View ArticleAnswered: NEC3 ECC: Can you reopen a CE once the quotation has been accepted?
The short and simple answer is no. Once implemented (and I’m assuming they have been due to your comment that they have been agreed) quotations cannot be revised – see clause 65.2. The only exception...
View ArticleAnswered: NEC TSC: How are extensions to the service period handled?
The simplest thing to do would be for the two Parties to sign a Supplemental Agreement extending the service period to a certain date. If all other terms stay the same it would be a simple document,...
View ArticleAnswered: NEC3 ECS: Late payment notification and compensation events
It depends which option they are working on as to whether they are entitled to be paid at that point. If it is option A, then you pay them for completed items on the activity schedule, and a CE does...
View ArticleAnswered: NEC3 ECC: Hierarchy of Documents
Here is a link to an article I wrote many years ago on precedence / hierarchy of documents under NEC :...
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