Answered: Is value engineering included in NEC4?
It is, however the NEC4 calls this Contractor’s proposals. The Contractor can make a proposals that reduce cost which if accepted by the Project Manager the Contractor shares in the cost savings.
View ArticleAnswered: What would I use the NEC4 Design Build Operate Contract (DBO) for?
Design, build and operate is a procurement method that integrates design, construction, operation and / or maintenance activities. This gives clients a more integrated, whole life solution for...
View ArticleAnswered: Does the NEC4 encourage making decisions about assets based on...
Yes, there is a new secondary option which incentivises the Contractor to make proposals to reduce the cost of an asset over its whole life.
View ArticleAnswered: What would I use the NEC4 Alliance Contract (ALC) for?
Alliancing has grown in popularity over the last 10 years or so. It involves the integration of delivery teams for large, complex projects or programmes. The client only need enter into a single...
View ArticleAnswered: Can you procure an alliance contract under NEC4?
Yes, there is a new form of contract specifically for this, the Alliance Contract (ALC), it is initially being published as a consultative form, presumably so that NEC can receive feedback from...
View ArticleAnswered: Can you procure a design, build and operate contract under NEC4?
Yes, there is a new form of contract specifically for this, the Design, Build Operate (DBO) Contract.
View ArticleAnswered: Can I still use NEC3 for my contracts after NEC4 is published?
Yes, it is up to you to decide whether or not you want to adopt NEC4 for your contracts. In the short term you may choose to stick with NEC3 until you’ve had chance to understand what the differences...
View ArticleAnswered: Can you summarise the key differences between NEC3 and NEC4?
The following is an extract from Glenn Hide's website. "The new NEC4 suite of contracts are being published on the 22nd June this year. Below is a summary of some if the main changes, in terms of the...
View ArticleNEC ECC: Collaborative working/mutual trust & co-operation
There is a fully integrated team between the Employer & the Contractor. The Contract is Option "C" but pain/gain & target was removed, without LD's and includes a fixed fee payable on milestone...
View ArticleNEC ECC: Advice for using Specification for Highway Works
When using the Specification for Highway Works (SHW) with NEC3 ECC, what is the best way to structure the contract documents to ensure clarity and avoid ambiguity? My concern is that whilst the NEC has...
View ArticleAnswered: Sub-Contract Fee Under Option B
What matters is your 'direct fee percentage' as entered in your contract's Contract Data. That is the deal which is struck under NEC option B and you have signed up for it at 0%. Consequently, for the...
View ArticleAnswered: Payless notices for CEs yet to be agreed
As I understand it, if you, as a Subcontractor, have applied for these amounts, then the Contractor would have to issue a Payless Notice stating why you are not (yet) entitled to them i.e. they have...
View ArticleAnswered: NEC ECC: Compensation event due to changes in works information...
I think : - the compulsory site briefing is contractually irrelevant; - this comes down to what exactly was said in the Works Information in terms of constraints that the Contractor has to work under....
View ArticleAnswered: NEC ECC: Defects in relation to programme
I think it is a good idea to show them on the programme. We could debate for a while whether they have to be or not, but it will just be quicker to do it rather than argue whether they should be there...
View ArticleAnswered: NEC ECC: Incorrect PM assumption
Assuming this assumption was for a compensation event, if it turned out to be different then this difference can be assessed as a new compensation event. This in turn under option C would increase or...
View ArticleAnswered: NEC TSC - Calculation of Late Interest
the calculation is method 2 however £30K x 1.5% is £450, the £86.54 is right. complete week means that it needs to be a complete week eg 9.5 weeks would be 9 weeks
View ArticleNEC ECC: Can Delay Damages be changed by agreement between the parties under...
I think it is fair to say that anything in the contract can be changed by agreement (as long as agreement means both Parties agreeing!). You may need to take legal advise as to how this is written and...
View ArticleAnswered: NEC ECC: If the Contractor notifies the PM of ambiguities /...
If something is established as a compensation event, then either Party can notify to the other that this is a compensation event. If the PM agrees this is a compensation event, they would notify that...
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