Answered: NEC3 ECC: Option A - Activity Schedule
The Contractor should revise their activity schedule and spread that cost elsewhere within the other items on the activity schedule. It is a lump sum fixed price. If an item is not done it does not...
View ArticleAnswered: NEC3 ECC: When Substantiating CE's are Site diary’s sufficient for...
Whilst things like site diary sheets and invoices are all important records for a Contractor - they have very little relevance when it comes to assessing compensation events. Clause 63.1 states that...
View ArticleAnswered: NEC3 ECC: Decloration of savings under option C
X15 is irrelevant in this particular situation. It depends if the design is your responsibility or it is the Employers. If it is Contractor design and they propose a value engineering idea, then this...
View ArticleNEC3 ECC: Consequential effects of missing a key date
What advice can you provide regarding the consequential effects of clause 25.3? For example a contract takes one year to complete at a cost of £1M and the Key Date is the Completion Date. If the...
View ArticleAnswered: NEC3 ECC: Hidden/Latent Defect after Defect Date ?
A latent defect discovered after the Defect Date remains the contractual responsibility of the Contractor until the end of the relevant limitation period under English law (in basic terms 6 years if...
View ArticleAnswered: NEC3 PSC: Can secondary Option Clause X11 be included in the NEC3...
Yes you should be able to use X11 with an Option E PSC. The primary purpose of X11 is to introduce termination at will in addition to the other grounds in Clause 90. The Calculation would be carried...
View ArticleAnswered: NEC3 ECC: Can a CE be raised for abortive costs?
Depends how the PMI has been instructed. If this is under 61.1, the Contractor is obliged to proceed in meantime in lieu of quotation being agreed. It would then be a new instruction to stop these...
View ArticleNEC3 ECSC: What are the main differences between long and short form ECC
What are the main differences between long and short form ECC in terms of actual conditions of contract and what are the advantaged of the long form over the short form
View ArticleAnswered: NEC3 FC: Offer and Acceptance, NEC3 Framework Contract, Package Orders
In essence, the Framework is one contract and the Packages are another contract so you need to show everything necessary for a contract under each. Your example is therefore essentially correct (not...
View ArticleAnswered: NEC3 ECC: Lost/Missing Equipment
Potentially yes the amounts could be recovered as a claim for breach of contract as the Contractor failed to secure the site with the loss being the residual value of the missing items.
View ArticleAnswered: NEC3 ECC: Assessment periods after termination notified
Once the termination notice has been served the procedure in the termination provisions will apply in terms of payment as the contract has ended. That is, of course, assuming that the termination has...
View ArticleNEC3 ECC: Time cost build up under Option C
We are a Contractor based from our own office, which for the duration of the contract is deemed part of the Working Area. I am currently preparing a CE quotation that includes a 5 week extension to the...
View ArticleAnswered: NEC3 ECC: Option B - Remeasurement
If you look at clause 60.4 then it is a compensation event if the final quantity done compared to the item stated in the bill is more than 0.5% of the total of the Prices then this difference would be...
View ArticleAnswered: NEC3 ECS: Can cancellation costs be disallowed under Option C?
No they are not in my view disallowable. These are costs incurred for People whose normal place of working is within the working area (first bullet of people costs). The cost could be under any of...
View ArticleNEC3 ECC: Due date for terminated final payment
In the NEC3 short subcontract it is not laid out how the final payment is calculated and when the final payment is due. If we terminate for reason 2, who determines what the forecast additional cost...
View ArticleAnswered: NEC3 ECC: Option A - Remeasurable?
No they can't, although it does depend a little on why you have not done the amount described. If the Employer instructed less work off their own back then yes this would be a compensation event and a...
View ArticleAnswered: NEC3 ECC: If Clause 60.4 is deleted under an Option Z Clause to a...
Removing clause 60.4 does not mean it is not re-measurable - it just means that you always use the BofQ rates even when there is a major change in quantity. Clause 60.4 ring fences that only a certain...
View ArticleNEC3 ECC: Applying of Clause 51.2
We have recently issued the required notice that will be applying for interest on late payment under Clause 51.2, as we not received payment in over the 4 weeks from the assessment date, the contract...
View ArticleAnswered: NEC3 ECC: Applying of Clause 51.2
It is 2. Here's the reasoning : - under clause 51.2, interest is paid on late certified payment. - 'interest' is not Defined Cost and hence not part of the Price for Work Done to Date - nor is late...
View ArticleAnswered: NEC3 ECC: Due date for terminated final payment
Termination of a contract has to be handled very carefully, so the first step is to ensure that you comply with the contractual procedures and resist allowing either party to deviate away from this. So...
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