Answered: 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: Change to working pattern
No this is not the same thing as acceleration, which is specifically dealt with under clause 36 of the contract. This instruction would be a compensation event which would be assessed accordingly...
View ArticleNEC ECC: Can contractor claim for loss of profit under Option B, if so,...
The priced contract value is turning out to be 50% more than the actual value. Quantities were overstated and the Contractor mobilised based on false quantities.
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: Project manager not supplying all the information to complete the...
A PC amount of 2000.00 was allowed for in the original BOQ for signage. The final amount when the project was completed was 50000.00. The project manager{PM} did not give the contractor the signage...
View ArticleNEC ECC: Final Account time frame.
What is the time frame for the QS to complete the final account since final completion has been granted. He had all the information required to complete the final account. From when are you...
View ArticleNEC ECC: Process to implement Clause X1 where no indices have been included?
We are currently working on a JV project which has clause X1 included in the contract documentation. We are aware that indices should be written into contract data part 1 but this has been overlooked,...
View ArticleNEC ECC: Compensation Event Time Bar Clause 61.3
Under NEC3 ECC, to ensure a change to the Prices, the Completion Date or Key Date, the Contractor was required to ' ... notify a compensation event within eight weeks of becoming aware of the event ......
View ArticleNEC ECSC: Can a Compensation Event occur after defects date
We have completed a project under ECSC contract and the defects date has now passed but an event has occurred which would ordinarily be a CE under clause 60.1(14). I appreciate that clause 61.5 states...
View ArticleAnswered: NEC ECS: Providing grounds for rejecting a nominated Subcontractor
You can reject for any reason - but if that is not a valid reason under the contract then this will be a compensation event. Any increase cost the subcontractor will incur for going elsewhere they can...
View ArticleIs the project manager entitled to deduct more advance payment repayment from...
Say the advance payment repayment is pegged at $128 000 per month, can the Project Manager increase this figure to say $220000 and this is done without consultation with the contractor.
View ArticleNEC ECC: Management staff costs when assessing delays
How do you assess changes in management? The contract has a site management team which changes during the project. At the start ( 1xProject Manager, 1x Site Agent, 1xWorks Manager, 1xengineer) as per...
View ArticleNEC ECC: Cancellation of CE's
There is 3 parts to this question: Option B Contract 1.If a CE was raised up to Part 3 being received from the Contractor, how do you cancel a CE? 2. What if the CE was notified, Part 2 was issued to...
View ArticleNEC ECC: Use Option A and Option C Under one Contract
We are proposing to award a contract using Options A & C under one contract. the materials will be scheduled under the Option A, with the Installation element under the Option C with...
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: Project manager not supplying all the information to...
First of all prime cost sums should not be used in NEC. The Works Information should be sufficient to allow the contractor to plan and price his works. In answer to your questions 1) The provision of...
View ArticleAnswered: NEC ECS: If the subcontractor includes a risk register as part of...
The Risk Register is a project management tool to help all parties deliver the contract. It is not a means of assigning the commercial aspects of the risk. If you are on an Option A and the total of...
View ArticleAnswered: NEC ECSC: Can a Compensation Event occur after defects date
As you state clause 61.5 sets out that a CE is not notified after the defects date however if both parties are in agreement to have the work carried out then clause 12.3 can be used to record the...
View ArticleAnswered: NEC ECC: Compensation Event Time Bar Clause 61.3
Good question. I think the obligation is on the Contractor to notified if he believes the matter to be a compensation event so presumably it is within 8 weeks of becoming aware that a matter he...
View Article