Answered: NEC3 ECC: Option C - Incomplete activities and how to assess them
It might be a "fair and reasonable" approach, but is it what the contract says ? The Contractor's obligation is to do the work in the Works Information, NOT the work in the activity schedule. Switch it...
View ArticleAnswered: NEC3 ECC: Option A Indirect Cost Recovery
Two issues here : 1. the excluded cost that you are not allowed to charge is "the cost of preparing quotations". Taken literally, that is putting together the quotation, not all the planning etc which...
View ArticleNEC3 ECC: Decloration of savings under option C
If a Contractor wants to use a Subcontractor with a slightly different design but conforms with the Works Information and a cheaper option, with option C and with X15 do they have to declare the savings?
View ArticleNEC3 ECC: Hidden/Latent Defect after Defect Date ?
1- What is the UK Law for piping works regarding hidden/latent defect if no latent defect period is specified after the defect date in the contract data and have no specific clause in the contract ? My...
View ArticleNEC3 ECC: Treatment of Sucontractor Cost by Main Contractor in preparing...
I am having some difficulties in understanding how exactly a Main contractor should be preparing and pricing their quotations, specifically in regards to Subcontracted activities. Where a main...
View ArticleNEC3 ECC: Project Staff working outside the defined Working Area
We are a small M&E company and as such rarely have a site establishment on our projects. Consequently most of the specific project management is performed within our office. Is it the case that all...
View ArticleNEC3 ECC - What items require to be considered for inclusion within the...
We are operating as a small M&E company and have been requested as part of a PQQ to advise of the percentage fee for design overheads. Is it to include for such matters as NI payments, Insurances...
View ArticleAnswered: NEC3 ECS: What constitutes "communicated separately"?
When you say you are communicating a CE - is that the notification or the quotation? Lets assume it is the notification. As a project you would hope/assume either you are using an inline portal such as...
View ArticleAnswered: NEC3 ECC: Can the quantities of a CE for Option B be remeasured?
Clause 60.4 states that if a line item changes by more than 0.5% of the total of the Prices then the remainder is assessed as a compensation event. Put in simple terms, for a £1mil project, a single...
View ArticleAnswered: NEC3 ECC: Treatment of Sucontractor Cost by Main Contractor in...
I think this question is a little confused as there are two separate aspects here. Firstly, whatever the Contractors price is and how it is made up is up to you to review and interrogate before you...
View ArticleAnswered: NEC3 ECSC: Change in a Completion Date
Under any of the NEC3 contracts once a compensation event is implemented (i.e. PM in writing has confirmed the cost and/or movement in Completion Date) then it is not revisited if it is later found out...
View ArticleAnswered: NEC3 ECC: Sub Contract Fee Percenatge
What level of fee is added will depend upon what Option you are using and hence the definition of Defined Cost - 11.2(22) or 11.2(23). If using Option A or B the 10% would not be added. The 5% would be...
View ArticleAnswered: NEC3 ECC: Assessing Compensation Events
the adjustment to the original Total of the Prices should be based on the change in Defined Cost + Fee due to the CE. You will therefore have to work out what the change is eg the Defined Cost + Fee to...
View ArticleAnswered: NEC3 ECC: Change in quantity under option D
if I'm understanding your question correctly. The original Total of the Prices included 500 pile tests at £100 each so £50,000. There has been a compensation event revising the Works Information such...
View ArticleAnswered: NEC3 ECC: Option B Contract – can a Contractor claim ‘Loss of...
If they can not prove that they have brought in additional resources to manage the level of compensation events then there is no where that they can claim for this as part of a compensation event...
View ArticleAnswered: NEC3 ECC: Option B, Compensation Events resulting in BQ Items...
The overall intention of assessing a compensation event is that the Contractor is no worse or better position and, in simple terms, should be based on the Defined Cost + Fee of Providing the works had...
View ArticleAnswered: NEC3 ECC: Replacing Project Manager
Project Manager is the person appointed by the Employer within the ECC contract (and the only contract this name appears). This person makes all the decisions and issues all the...
View ArticleAnswered: NEC3 ECC: Can an implemented quote for an Employer's risk...
Once a compensation event is implemented that is full and final and can not be revisited. You can however have a compensation event on a compensation event - e.g. you may get unforeseen ground you...
View ArticleNEC3 ECC: Can you request an early warning meeting, as per clause 16.2, in...
Can you request an early warning meeting as per clause 16.2 in the body of the early warning notice which you have served under clause 16.1 ? This seems to happen a lot, but clause 13.7 says that:“A...
View ArticleAnswered: NEC3 ECC: Rejecting Contractor design
PM can always reject for any reason, but if not a valid reason in the contract then this would become a compensation event under 60.1(9). Any rework of the design and any associated implications would...
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