NEC3 ECC: Option E Fee on Fee
I am currently managing an Option E Main Contract which has a 15% Subcontract fee percentage in. We have Subcontracted a company to provide labour costs. Their direct fee percentage is 15%. They apply...
View ArticleNEC ECC: Defined Cost - Plant - Held in wait for start
Background: main Contract is ECC Option C, each Project is a CE: We have a project (CE) that had a critical start date which was delayed after the CE was accepted by the client. An EWN was raised...
View ArticleNEC3 ECC: Can the Employer terminate for budget cuts?
You are the Project Manager on the construction of a new asset. The tendered total of the Prices was approximately £10m, ECC Option A was used with secondary Options X1, X2 and Y(UK)2 incorporated. The...
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: When is a defined cost a defined cost
Background: Option C contract each project is a CE, each with sectional completion. Project (CE) value was agreed with client and an approx 2 1/2 month duration into project before project was stopped...
View ArticleAnswered: NEC ECC: Defined Cost - Plant - Held in wait for start
I think firstly, although you state that each Project is a compensation event, they are still just a part of the overall scheme of works under the main contract and as such can't be treated any...
View ArticleNEC ECC: Using CECA rates for plant equipment.
Should CECA rates be used for the productive time on site or the time actually whilst on site during working hours?
View ArticleAnswered: NEC ECC: Should I lose the opportunity to improve on programme...
The simple answer is that it IS a compensation event, if shown on the Accepted Programme and the Employer is required to provide what is shown. The time effect is then calculated in accordance with...
View ArticleNEC ECC: Can I retract a programme under option A
The client have not provided the design on time and the project is delayed by 1 year. The contract completion date has passed and the client has provided new dates that are can only be met if we incur...
View ArticleAnswered: NEC ECC: Option C - Effect of Penalty / Incentive on Target Cost
You don't state what mechanism is being used to assess and apply the 'penalty / incentive' regime, which I assume is based upon an amended Secondary Option X20 (Key Performance Indicators). Assuming...
View ArticleAnswered: NEC ECC: Reject forecast of defined cost?
What piece of paper this is submitted on is irrelevant. As long as it complies with 13.1 and 13.7 (i.e. in writing and separate) then there is nothing to reject here. Anyway, under NEC3 and the ECC,...
View ArticleAnswered: NEC ECC: Can I retract a programme under option A
The 'client' (Employer) not providing the design on time (as shown in the Accepted Programme) is a compensation event under clause 60.1 (3). This would entitle you to submit a quotation and a...
View ArticleNEC ECC: Can history be removed from the programme?
The Contractor have a option E contract with the Project Manager. the Project Manager requested the Contractor to remove the historical scope from the programme. i cant seem to find anything in the...
View ArticleNEC ECC: Removing clauses from Specification for Highway Works (MCDHW 1)
"Volume 2 , Works Information, 3 Series & Appendices, Appendix 0/3: LIST OF NUMBERED CLAUSES AND APPENDICES REFFERED TO IN THE SPECIFICATION AND INCUDED IN THE CONTRACT". The client has " Not...
View ArticleNEC ECC: Project Manager instructs a change to the Works Information
On an asset refurbishment contract under the ECC using Option A, the Project Manager instructs a change to the Works Information. The change is for some additional works. These works are likely to be...
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: Can history be removed from the programme?
By historical scope do you mean the first bullet of clause 32.1, the actual progress achieved on each operation and its effect upon the timing of the remaining work . If so you should ask the PM why it...
View ArticleNEC ECC: Cancelling Compensation Events
1. CE was notified by Contractor (p 1), PM requested quotation (p 2), Contractor submitted quotation (p 3). Employer not in agreement and it was discussed to "cancel". Do I do a part 4 and state the...
View ArticleAnswered: NEC ECC: Can history be removed from the programme?
This is a very strange request. You need to ask the Project Manager what they are looking to achieve by doing this. Historical as-built information will change nothing in the programme going forward....
View ArticleNEC ECC: A small area of new pavement construction has settled and is...
A small area of new pavement construction has settled and is beginning to crack. This occurs before Completion of the works in an ECC Option A Employer-designed contract. a. What do the Supervisor and...
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