NEC ECC: Under option C can CE's reduce the Target?
The Contractor has priced for working in a restrictive condition within an existing building (generally adds 50% to time and cost above normal working) and this is included in their Target Price. If...
View ArticleAnswered: NEC ECC: Is a PMI always a Compensation Event?
No a PMI is not a compensation event in its own right. If a Project Manager is instructing something that they know IS a compensation event, then at the time of giving the instruction they should state...
View ArticleNEC ECC: Delays to Employer design release
I have an interesting situation regarding design release information and float and DD's on an ECC option A contract. The contract data sets out when the Employer will give certain design information...
View ArticleAnswered: NEC ECC: Are people cost changes a compensation event in Option B?
It is best if answer your last question first. And the answer is 'Yes', of all the things listed by you, it is only a change in quantities under option B clause 60.4 or 60.5 which may cause a...
View ArticleAnswered: NEC ECC: Can the performance failure of a critical supplier be...
OPtion B is priced based contracts which essentially means that all risks not listed as compensation events fall up the Contractor. The first sentence of clause 26.1 says "If the Contractor...
View ArticleAnswered: NEC3 ECC: Option E - Working & Design Area Overheads.
The Working Area overhead is applied to Contractor employed people (as defined in People 1) who are working in the Working Areas. The percentage for Design overheads is applied to designers directly...
View ArticleNEC ECC: Under option A is common law , is contract breach recovery better...
We are finalising a contract under ECC Option A, we are not sure whether the use of X17 as Low Performance Damages would be useful or whether it would be best to leave out X17 and if performance is...
View ArticleAnswered: NEC ECC: Is a PMI always a Compensation Event?
Examples of PMIs which are not compensation events : - an instruction to attend an early warning meeting (clause 16.2 of NEC3 ECC) - an instruction to remove a person (clause 24.2 of NEC3 ECC) - an...
View ArticleAnswered: NEC ECC: Delays to Employer design release
This is an interesting one ! Clause 63.3 is the clause which governs the calculation of the delay to the contractual Completion Date with reference to how far back practical Completion is delayed. The...
View ArticleJCT - Client changing specifications - what can I claim?
The contract is a fixed cost jct the client is out sourcing different specifications from the contract i.e. Cheaper bathrooms cheaper floor finishes and external cladding we are still applying ohp to...
View ArticleNEC4 ECC: Option A - can you use options X15 and X21 together?
We are putting together a contract ECC option A using the new NEC4 contract. The Client has specified that X21 is included and the contractor has requested X15. Can they both be included?
View ArticleNEC ECS: Under option E, can contract data part 2 change by Contractor?
I understand contract data part 2 is the information submitted by the Subcontractor to form the fees and model of the contract. However what if the Contractor submits changes un-aware to subcontractor...
View ArticleNEC ECC: Valuing a change of Works Information CE from refurb to replace
Option C Contract in which the WI has changed from refurb 3 filters to replace 2 filters and remove & dispose 1. How is the change valued? Obviously Defined cost will be paid i.e. costs + fee...
View ArticleAnswered: NEC ECC: Is a PMI always a Compensation Event?
No a PMI is not a compensation event in its own right. If a Project Manager is instructing something that they know IS a compensation event, then at the time of giving the instruction they should state...
View ArticleAnswered: NEC TSC: Service Manager - Delegated powers
No there is no hierarchy between original named person and that of a delegate. They carry equal weight. Any instruction by one or other would supersede the previous and in itself would be a...
View ArticleAnswered: NEC3 ECC: Applying Working & Design Area Overheads
No, because the DAO only applies outside the Working Areas - see the opening sentence of 6 of the full Schedule of Cost Components.
View ArticleAnswered: NEC TSC: Are direct and indirect fees added to all works or only CE?
In answer to your questions : 1) Neither of what you say. As the price is in the Price List, you get paid what is in the Price List - see TSC option A clause 11.2 (17) and (19) with no addition of Fee....
View ArticleAnswered: NEC TSC: Is price adjustment under X1 monthly or annual?
In the unamended contract, the adjustment is made when a referenced index is updated - see clause X1.2. Often this is changed to make it an annual adjustment.
View ArticleNEC ECC: Re-measurement under an Option D form of contract
I am currently working with an ECC Option D contract where the contractor is also carrying out the detailed design. Could someone offer some affirmation or correction of my understanding of the...
View ArticleAnswered: NEC ECC: Can the non-availability of a product due to a...
No - 60.1(19) is for pretty extreme force mejeure type events of which this is hardly one of them. This certainly doesn't sound like it should be the Employer liability for this issue. I assume there...
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