NEC3 Short contract termination
I have received a termination notice under reason  5 within the NEC3 Short form. What I am trying to clarify is following 92.1 and what the amount due on termination includes. What is the amount due...
View ArticleNEC3 Is a programme accepted by default?
If the PM does not accept or reject a clause 32 programme in the allotted time, does this become the accepted programme by default?
View ArticleAnswered: NEC3 ECC: What is the implication of 3rd bullet point of Clause 32.1?
Your first question established that yes they should show the effect of non-implemented compensation events on the programme which may well take planned Completion beyond Completion Date. You now ask...
View ArticleAnswered: NEC3 ECC: Early warning notices on the revised Programme
My slant as to whether the Contractor should show an early warning on a programme depends on the likelihood of it occurring : - if it's 10%, the answers almost certainly not; - if above 80%, the answer...
View ArticleAnswered: NEC3 ECC: Substantiation of a quotation for a CE under option A
Clause 62.2 middle sentence says that "The Contractor submits details of his assessment with each quotation" and a generic reason for rejecting any submission for acceptance is that "more information...
View ArticleNEC3: Should a CE be put together with a view when the impact occured or at...
An event (client delay) has happen in Feb 15 which has had an impact on the critical path moving the planned completion from Mid July to Mid September. A EW has been raised but no NCE has been raised...
View ArticleAnswered: NEC3 ECC: If a subcontractor goes bust does that mean a CE is valid...
It would not certainly not automatically be a reason to claim a CE under (19). It could be that the Contractor had not done their homework on them with credit checks and things like that, and therefore...
View ArticleNEC3 ECC: Deemed acceptance of inconsistencies
The Project Manager claims that a Contractor must be aware of the inconsistency between or within contract documents at contract date, otherwise he loses all the rights to Compensation after 8 weeks...
View ArticleAnswered: NEC3 ECC: Remeasuring items by the PM in the BoQ where quantites...
The answer is potentially a bit of both! It all depends how much the quantity has changed by. If you look at clause 60.4, it is assessed as a compensation event if an individual BofQ line item changes...
View ArticleNEC3 ECC: Delay to the works
Whilst the PM agreed that a delay occurred the subject NCE was rejected on the basis that the Contractor was not ready to start the works due to their fault and as such no entitlement existed, however...
View ArticleNEC3 ECC: Option D - Consequential Costs due to Defects caused by Contractor...
Under NEC 3 Option D, it is clearly stated that the "cost of correcting Defects caused by the Contractor not complying with a constraint on how he is to Provide the Works stated in the Works...
View ArticleAnswered: NEC3 ECC: What does clause 60.1(8) cover?
You could look at the PM deciding that the works do not meet the condition for a key date and then changing that decision (clause 25.3) or perhaps changing a decision on the date for Completion (clause...
View ArticleAnswered: NEC3 ECC: Secondary Option X7 & x18.4 - Damages
Question 1 - Delay Damages will be a complete remedy for time related costs. Therefore, no standing time cannot be claimed above the delay damages limit. Question 2 - Under X18.4 this is total...
View ArticleNEC3 ECC: "Confidential" Records of the Contractor
Clause 52.3 of NEC3 states that:"The Contractor allows the Project Manager to inspect at any time within working hours the accounts and records which he is required to keep." Meanwhile Clause 14.2...
View ArticleNEC3 ECC: Compensation Events and Fees
A Subcontractor has submitted a quotation for works for us to forward onto the employer, the works only involve this subcontractor. They have broken the elements down into cost and have a line for the...
View ArticleNEC3 ECC: Clarification of who is responsibility for notifying compensation...
Under the NEC3 Contract (Option C): Which compensation events is the Project responsible for notifying, and which compensation events is the Contractor responsible for notifying? For the compensation...
View ArticleAnswered: NEC3 ECC: Cost of Correcting Defects
If you have been instructed to do something by the Project Manager then under clause 27.3 you are obliged to follow that instruction. If this is something that they may perceive to be a defect, it is...
View ArticleNEC3: Does Deductible cost for insurance part of the Defined Cost?
We are currently engaged in an Option D Contract. Construction is ongoing and then Defects were found on constructed Bored Piles. The Bored Piling Works was Subcontracted. The Contractor says the cost...
View ArticleNEC3 ECC: What happens if an "implemented" CE does not go ahead
What happens if an implemented CE does not occur? i.e the need for the works that were a CE goes away but the CE has been implemented?
View ArticleAnswered: NEC3 ECC: Is no Time Risk Allowance a reason not to accept the...
You would be within your rights not to accept this programme as time risk allowance is a requirement in clause 31.2, and if not complied with a reason to reject under clause 31.3 (doesn't show the...
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