Answered: NEC3 ECSC: Cost Elements, Fee and SSCC - where are the costs...
The definition of Defined Cost in the ECSC is brief by comparison to the ECC as it would only be used for assessing compensation events, which by definition will be low risk, low value items in the...
View ArticleAnswered: NEC3 ECC: Can an Employer withhold monies for defective works from...
In short yes, provided that you can justify why the activities that had previously been certified and paid are now not "complete" (ref definition of PWDD at clause 11.2(27). If the PM has wrongly...
View ArticleAnswered: NEC3 ECC: Schedule of cost components - people outside the Working...
No, people who's normal place of working is outside the Working Areas are only paid for when they are within the Working Areas. The distinction is provided so people who are visiting Working Areas are...
View ArticleAnswered: NEC3 ECC: Ambiguity within "Preambles"
It is difficult to give an answer to this question without site of the documents to which you are referring. One thing that springs to mind is why are you having to handle the materials multiple times?...
View ArticleAnswered: NEC3 ECC: Option A missing items on activity schedule, and when can...
OK three questions in one, so here goes: 1) Contractor is paid in line with completed items on their activity schedule. Fact it is or is not on their programme is kind of irrelevant. If the activity...
View ArticleAnswered: NEC3 ECC: Process for correcting defects and accepting subcontractors
Probably more useful for you and others in the future to list questions separately, but I have answered them both here: 1) I don't think it matters in this example who the design responsibility was...
View ArticleAnswered: NEC3 ECC: Recoverable cost of Subcontractor is rejected?
Refer to clause 26.2 where it states that "a reason for not accepting the Subcontractor is that his appointment will not allow the Contractor to Provide the Works", therefore provided the PM has...
View ArticleAnswered: NEC3 ECC: Actual cost of CE is less than agreed - what happens?
Clause 65.2 states that "the assessment of a compensation event is not revised if a forecast upon which it is based is shown by later recorded information to have been wrong". Therefore under main...
View ArticleAnswered: NEC3 ECC: Time cost build up under Option C
The WAO is intended to cover the items listed in para 44 of the Schedule of Cost Components which are probably not the type of costs you are considering as head office overhead. If the office has been...
View ArticleAnswered: NEC3 ECC: Clause 63.2 Reduction of Defined Cost
1) The lack of access is a compensation event under clause 60.1(2) and can should be assessed on its own merits. If you can mitigate any costs then you should, but equally you should not be...
View ArticleNEC3 PSC Option X1 Price Adjustment for Inflation
A Client has included Option X1 in Professional Services Contract and we are due to negotiate our first anniversary increase in rate. The chosen Index is has published these figures for the last year...
View ArticleNEC3 ECC: Is travel time between Working Areas recoverable under ECC Option C?
My company is the main contractor for a small project located 100 miles away from our head office. In addition to the site boundary an area of our head office is classified as a Working Area for the...
View ArticleAnswered: NEC3 ECC: Opportunities to benefit the Project with bespoke change...
Without knowing the complexity of the contract it is difficult to give a clear answer however if these opportunities are reducing cost and/or Defined Cost (by mitigating his risk) then the Contractor...
View ArticleNEC3 ECC: Pay less notice under option E
I am hoping you can help with a query I have on an Option E contract. We are now nearer the end of the project for the client and the client have stated within a pay less notice "We would like to note...
View ArticleAnswered: NEC3 ECC: Option A - What are the effects of the Employer omitting...
1. Yes this will be a compensation event, and therefore the quotation should be assessed as the cost that it would have been for the Contractor, plus any "prelim" type saving if the planned Completion...
View ArticleAnswered: NEC TSC: Are weather events Employer risk or Contractor risk?
You are correct, weather is not a CE so should be thought of as a Contractor's risk
View ArticleAnswered: NEC3 ECC: Pay less notice under option E
This is a very hard one to answer as I am pretty sure there would be more general rules stated elsewhere in the schedule you filled and quite possibly as option Z clauses. On it's own though, be aware...
View ArticleAnswered: NEC3 ECC: Is correcting defects recoverable under option A?
Under option A the Contractor is paid in accordance with completed items on their activity schedule. If they have already been paid when this item was installed, if it turns out that it is defective...
View ArticleAnswered: NEC3 PSC Option X1 Price Adjustment for Inflation
You need to look at the exact dates in your contract in order to determine the correct indices to use for price adjustment. Firstly establish the Contract Date, i.e. what date was your contract signed?...
View ArticleNEC3 ECC: Hierarchy of Documents
On an Option A contract the contract contains 40+ Z clauses. It is a contract 2 years on the ground, 1 year in delay and 50% above budget, with the majority of delays and additional costs around...
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